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JAN. 2018

Supply Chain across the U.S.-Mexico Border

Shaping Up for Business in

2018? What can business expect in the coming year?

Training Advances

Multilingual Advantage

Trending Changes in

Office Design

Finance & Workforce – 3-part series

$4.95 INBUSINESSPHX.COM

THIS ISSUE Global Chamber Alliance of Arizona Nonprofits


R ESPECT TH E FANS | RE SPE C T THE P L AY E R S | R E S P E C T T HE GA ME

#THEPEOPLESOPEN

JANUARY 29 – FEBRUARY 4, 2018 | TPC SCOTTSDALE | WMPHOENIXOPEN.COM


JANUARY 2018

COVER STORY

24

Shaping Up for Business in 2018?

In Business Magazine asked five local “gurus” to share the view from their perspective on what lies ahead in 2018 — plus, give us a peek at their wish list for strengthening the environment for business growth. FEATURES

30

Language Training Benefits Business

“A Direct Link: The Connection between Flu Season and the Bottom Line” and “Mental Illness in the Workplace”

36

20

Putting the 'Why' in Personal Finance

DEPARTMENTS MAGAZINE

JAN. 2018

IN BUSINESS

Shaping Up for Busines s in

THE YEAR AHEAD

2018? What can expect in business the coming year?

JANUARY 2018

Training Advances

• INBUSINESSPHX.COM

Multilingu Advantag al e

Trending

Finance Workforce& – 3-part

Changes

in Office Design

THIS ISSUE

series

Global Chamber Alliance of Arizona Nonprofits

$4.95 INBUSINESSPHX.COM

DON’T MISS OUT!

9

10

PARTNER SECTIONS

11

GLOBAL CHAMBER Global Chamber® Events

WINTER 2018

phoenix.globalchamber.org/events

January 2 and throughout 2018 Enlightened Leaders Mentoring and Peer-to-Peer Advisory January 16 Tips on Cross Cultural Communication 8:00 a.m. SkySong in Scottsdale

SPOTLIGHT EVENT January 23 International State of the Metro 5:30 p.m. DIRTT in Phoenix phoenix.globalchamber.org/events

January 30 Setting Up Your Business Abroad 8:00 a.m. SkySong in Scottsdale

January 30 Global Chamber Phoenix Advisory Board 3:30 p.m. SkySong in Scottsdale

Inside this Section

2 3  4  5  6  7  8 

Recent Member Success Round-the-World

Upcoming Business Growth Events Staying Ahead of NAFTA Trade Law Changes

12 Habits of Warm Connectors Key Business Insights for Investing in Africa

Tips for Cross-Cultural Communication Trade Missions to New Markets Worldwide

Become an Enlightened Leader by Doug Bruhnke, CEO and Founder of Global Chamber®

Enlightenment: Having or showing a rational, modern and well-informed outlook. The world is changing rapidly, so being enlightened to the present and future is essential. Eighty-five percent of new business opportunities in the next five years will be outside the U.S. The business world is full of people rich in culture and diversity. Does your business team have the diversity of the markets you intend to serve? Almost certainly NOT. Women make up half the population, yet they account for less than 10 percent of the leaders on U.S. company boards, and 7 percent of technology industry executives in the Bay Area. These facts are despite the data that shows companies with more gender balance are more successful. What’s holding companies back? History. Momentum. Fear. Fear by women of retribution for speaking out against unfairness and abuse. Fear by men that by opening the door to women in the workplace, they will be left out. Now, in the past couple of months, a claim by one woman against a movie studio producer for abusing his position of power has turned into two claims, and three and many more — and dozens of executives have been fired for abusing their positions of power against women. The business reality is, the world is changing rapidly, and women are gaining more and more powerful positions. And if your business team doesn’t reflect the markets in which you plan to grow five years from now, you’re at a disadvantage to companies who are. And so the time for action is NOW. Twenty years ago, I fought and eventually was able to shift an OL (office lady-secretary/admin) in my company’s Osaka office to phone sales. The office leader had been arguing for many months that “no one at Toyota will ever buy from a woman.” Wrong! Once she started, she became our best salesperson!

Today, Enlightened Leaders must work in a more dynamic world where the vast majority of opportunities are in another metro and country — requiring that each leadership team reach beyond its comfort zone to come up with new approaches that meet the needs of new markets. Teams that have a global mindset and their eyes on diversity and gender balance WIN in today’s world. Too many times we see C-levels NOT fully supporting their team’s development, failing to expose more of the team to international issues. It’s a priority! This is an old problem, and I remember when I started 30 years ago, even multi-nationals struggled on this — isolating global knowledge to a few employees. Now, SMEs wrestle with this issue — and, honestly, not too successfully. So, at Global Chamber®, we’ve made it VERY EASY for the C-suite to share global leadership development with its team. Learn more about the Global Chamber® Enlightened Leaders initiative that offers executives events, mentorship and peerto-peer advisory. It’s for women AND men to better navigate the challenges and gain from the opportunities. NOW IS THE TIME to act — to accelerate growth and success in 2018. Be part of the solution and capture new opportunities. Contact me at doug@globalchamber.org. GlobalChamber.org

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41 Global Chamber

UNITING, STRENGTHENING, AND ADVANCING ARIZONA’S NONPROFIT SECTOR. ARIZONANONPROFITS.ORG

We can’t go back to the future …

CONTENTS

p. 2 The Nonprofit/For-Profit Connection: AWE Corporate Interiors and Cancer Support Community AZ p. 3 998, 999, 1,000! p. 4 Your Business and Arizona Gives Day p. 5 On The Board and In The Spotlight: Shaylinn Aleman

David C. Brown, Neil Giuliano and Tammy McLeod respond to In Business Magazine’s burning business question of the month.

Briefs

“Striking Entertainment Trend,” “Bilingual Training Business School Expands,” “Language Training,” “Message, Meet and Call in a Single Work Stream,” “Software for a Just Culture,” “Local Standouts Recognized for Achievements and Philanthropy,” “Boutique Hotel Brings Downtown Vibe and Economic Value” and “Salon Debuts Membership Model for Hair Extensions”

14

15

If you lived through the ‘80s, you will definitely remember an iconic moment from Back to the Future. It’s the moment Marty McFly, played by Michael J. Fox, realizes his future is at risk of never happening as his siblings begin to disappear from a family photo. Much like young Marty, we can’t forget what the picture of our future as a community might look like if we don’t remain vigilant about protecting the sustainability of our local nonprofits. What if no one stood up for the nonprofit sector? In 2014, the nonprofit sector contributed more than $22.4 billion to Arizona’s Gross State Product (GSP), positioning its contribution on par with the state’s entire retail trade. Arizona’s 21,137 registered nonprofits collectively generated approximately $28 billion in revenue, approximately on par with the annual revenue generated by the construction sector in the state. Also, Arizona nonprofits are responsible for 325,000 jobs and constitute the fifth-largest nongovernmental employer.

By the Numbers

Startups

“Scottsdale-based Startup One of 15 Invited to TechCrunch” and “Valley Startups Part of Inaugural Cohort to China”

Nonprofits are critical to the overall health of the Arizona economy and our communities. But what if nonprofits aren’t being compensated for the full cost of providing services? What if politics is allowed to creep in and cloud the support of charitable work, and nonprofits are no longer “safe havens” for every Arizonan? What if nonprofits and their boards don’t know they have a right to advocate on their behalf? What if …? What if …? What if …? Unfortunately, we don’t have a DeLorean to take us “back to the future” to fix things that might go wrong. We have to act now. That’s where we come in. The Alliance of Arizona Nonprofits, now 1,000 members strong, works tirelessly to ensure the voice of nonprofits is loud and clear on issues impacting their critical work on behalf of all our communities. And we make sure nonprofit professionals and their boards have access to information, resources and training to help them advocate on issues specific to their missions. The Alliance has worked tirelessly to protect and promote the nonprofit sector by rallying forces to communicate the dangers of eliminating or reducing the incentive for charitable tax deductions, educating lawmakers on why keeping

p. 6 The Board’s Role in Advocacy: An Expectation for Engaged Leadership

Feedback

Looking at trends in the office investment and lending landscape over the past 20 years, how does Phoenix rank against other major metropolitan markets?

WINTER 2018

The Alliance of Arizona Nonprofits is an action-oriented group of partners across Arizona — both nonprofits and those in the community who support them — dedicated to uniting, strengthening and advancing Arizona’s nonprofit sector. The Alliance envisions an Arizona where all nonprofits are valued, empowered and thriving.

Guest Editor

Rick McCartney, president and CEO of InMedia Company — and publisher of In Business Magazine — introduces the “Year Ahead” issue.

Get a year of In Business Magazine Subscribe now at inbusinessphx.com

®

Continued on Pg. 2

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49 Alliance of Arizona Nonprofits

Healthcare

Chris Brotherson discusses the top three things to keep in mind in evaluating language training for one’s business.

In this first of his three-part series on Finance and Workforce, George Grombacher examines the connection between employee productivity and personal money management.

Supply Chain across the U.S.-Mexico Border

18

16

CRE

“Rethinking the Office Space: Trends to Adopt in 2018,” “Pima Center Flex Full,” “Investor Enters Phoenix Market” and “Luxury Lofts within Westgate”

Technology

“’Ask Avnet’ and ‘Engineer on Demand,’” “Avnet Pioneers Digital Platform for Technology Distribution” and “Valley Golf Course Embraces Future with High-Tech Golf Cars”

22

Legal

Attorney examines the pros and cons of the Government Property Lease Excise Tax.

31

Books

New releases give fresh insights on business thinking.

32

From the Top

Cambridge Benefit Solutions celebrates two decades innovating solutions under the leadership of founder and president Don Fechter.

38

Assets

2018 Volvo XC90 Plus: While apps are great, here are our picks for stylish accessories that let us really take time into our hands.

39

Power Lunch

Original Chop Shop: Focus on Fresh Plus: Restaurants with a view offer a feast for the eyes.

58

Roundtable

Andrew Maltz examines supply chain issues as they relate to what has become the high-profile issue of cross-border trade with Mexico. ON THE AGENDA

33

Spotlight

Economic Momentum, Public Policy, and Small Business Opportunity — Greater Phoenix Chamber of Commerce ‘Together We Grow’ Leadership Series — Tempe Chamber of Commerce Women in Business Council

34

Calendar

Business events throughout the Valley

JAN. 20 1 8

4

INBUSINESSPHX.COM

Recent research by the W. P. Carey School of Business projects Arizona to add 61,000 jobs in 2018, up from a six-year low of 49,000 last year but not quite to the highs of 65,600 and 68,100 in 2015 and 2016, respectively.


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OUR CUSTOMERS SAY IT BEST “They’re very easy to get in touch with and I feel like they go above and beyond for their customers.”

Jan. 2018 In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.

Dr. Monica Brown

Owner: Fetch A Vet - Peoria, Arizona

PARTNER ORGANIZATIONS Kristen Merrifield, CEO Alliance of Arizona Nonprofits (602) 279-2966 www.arizonanonprofits.org Jack Lunsford, President & CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com

Your Work. Your Legacy.

Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org

There’s a sense of pride in getting the job done right. We’ve been treating our customers like family for over 100 years and we’re ready to do the same for you! For a fast business loan or complete banking relationship, call

Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org

480-314-4200 follow us

Julie S. Cook, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org

| stearnsbank.com | Member FDIC

Anne Gill, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.

ASSOCIATE PARTNERS Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com Arizona Chamber of Commerce & Industry azchamber.com Arizona Hispanic Chamber of Commerce azhcc.com The Black Chamber of Arizona phoenixblackchamber.com Chandler Chamber of Commerce chandlerchamber.com Economic Club of Phoenix econclubphx.org Glendale Chamber of Commerce glendaleazchamber.org Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce gpglcc.org Mesa Chamber of Commerce mesachamber.org North Phoenix Chamber of Commerce northphoenixchamber.com Peoria Chamber of Commerce peoriachamber.com Phoenix Metro Chamber of Commerce phoenixmetrochamber.com Scottsdale Area Chamber of Commerce scottsdalechamber.com Surprise Regional Chamber of Commerce surpriseregionalchamber.com WESTMARC westmarc.org

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JAN. 2018

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01

WHEN BUSINESS BOOMS, BOOM BACK.

Jan. 2018

VOL. 9, NO. 1

Publisher Rick McCartney

Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers Thomas C. Arendt

Chris Brotherson Beth Cochran George Grombacher Craig Henig Mike Hunter Dr. Arnold Maltz Kari Pieratt Kristina Sabetta Lauren Vargas Tobi Waller ADVERTISING

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Senior Art Director Benjamin Little

Chris Crafton 623-334-7186

Financial Manager Tom Beyer

Paul Menchaca 480-372-1628

1. Offers valid for applications received and completed between May 20, 2017 through July 7, 2017. Loans and lines are subject to credit approval and for business purposes only. Conditions, fees and restrictions may apply. Offers available for new Bank of the West loans and lines of credit. Offers require automatic payments from a Bank of the West Business Checking account. Rates and terms are subject to change at any time without prior notice. 2. The closing cost credit will be applied on the settlement statement as credit towards third-party fees such as appraisal, title policy and environmental fees incurred during the loan process. If the actual third party costs incurred are less than the advertised credit amount, no additional credit will be given. The fee credit cannot be combined with other loan offers. A credit up to $1,000 will be applied for loans between $150,000 and $500,000. A credit up to $2,000 will be applied for loans between $500,001 and $1,000,000. A credit up to $3,000 will be applied for loans between $1,000,001 and $2,500,000. 3. SBA loans from Bank of the West are in participation with the US Small Business Administration. Loans are subject to approval in accordance with both Bank of the West and SBA eligibility and lending guidelines. Certain fees, conditions and additional restrictions may apply. 4. A good faith deposit will be required upon accepting Bank of the West approval. If applicant withdraws the loan request after issuance and acceptance of Bank of the West’s Commitment Letter, all third-party costs incurred must be paid by the borrower. A credit up to $3,000 will be applied for SBA loans between $150,001 and $1,000,000. A credit up to $5,000 will be applied for SBA loans between $1,000,001 and $5,000,000. A credit up to $10,000 will be applied for SBA loans between $5,000,001 and $15,000,000. Credit cannot be applied toward SBA packaging or participation fee. 5. Bank of the West Prime + 0.5% rate is for new or existing Bank of the West customers who have or open a new Choice or Analyzed business checking account with Bank of the West. Available for Business Lines of Credit up to $750,000. After 12 months, a minimum rate of 4% applies. Bank of the West Prime is 4.00% as of March 22, 2017, and subject to change. 6. For new accounts, minimum opening deposit of $100 required; the monthly service charge of $20 on Choice Business Checking will be rebated for the first two statement cycles. Ask a banker about ways to waive the monthly service charge thereafter. Additional terms and conditions and fees apply. 7. Account charges based on service usage less earnings credits, based on balances, and may offset fees. See current Analyzed Business Checking Schedule of Fees for details. Minimum opening deposit of $100.

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Events Amy Corben

Inform Us: Send press releases and your editorial ideas to editor@inbusinessmag.com.

2

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8

Louise Ferrari Camron McCartney Kelly Richards Parker Shipe Cami Shore

More: Visit your one-stop resource for everything business at www.inbusinessphx.com. For a full monthly calendar of business-related events, please visit our website.

And for a limited time we are also offering:

SPECS

Operations Louise Ferrari

Office Manager Allie Schimmel

Accounting Manager Todd Juhl Corporate Office InMedia Company at Galvanize Phoenix Campus 515 E. Grant St., Suite 150 Phoenix, AZ 85004 T: (480) 588-9505 info@inmediacompany.com www.inmediacompany.com Vol. 9, No. 1. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 515 E. Grant Road, Suite 150, Phoenix, AZ 85004. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 515 E. Grant Road, Suite 150, Phoenix, AZ 85004 or visit inbusinessphx.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You July send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/ or financial professional. © 2018 InMedia Company, LLC. All rights reserved. No part of this magazine July be reproduced or transmitted in any form or by any means without written permission by the publisher.

NOTES

LINKS

None

40562_BOW_WAREHOUSE.TIF (CMYK; 884 PPI, 881 PPI; 33.93%, 34.03%), BOW_BNPP_P. EPS (56.36%)

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RICK McCARTNEY, INMEDIA COMPANY

A New Year, New Opportunities Rick McCartney is president and CEO of InMedia Company, a media technology company, and is responsible for producing many local, regional and national brands and media products. Brands include In Business Magazine; the Vicinity magazines; numerous community publications; and digital brands, mobile apps and marketing products. He is deeply involved in the business community, working with many of the economic development organizations and startup groups. In Business Magazine was developed to bring the business community together to empower business in the Greater Phoenix area and to elevate our place in regional and international business.

As a business owner, I know that building business is a natural focus throughout each year, but the new year always inspires that special impulse to try to predict: What opportunities will the new year bring? What’s in store for my business? Great focus on the bottom line and other aspects of our businesses seems to be heightened as we start anew on January 1 — whether it’s the start of a new budget year or simply a marking point for doubling down on our objectives. “Did we do what we said we would do in 2017?” “Will 2018 be a better year?” Well, many seem to think so. In fact, they think a focus on labor, capital and customers this year will pay off on productivity and the bottom line. As someone who gets to be strongly involved with others’ businesses in the Valley, I was asked by my editorial staff to lead this issue as we aggregate the thinking of many whose job it is to dig deep into economic opportunity and development, to arrive at some direction and forethought as we look at the New Year. It is the mission of several business and economic development organizations to advance the growth of business in our community. For the cover story, we asked five of our local “gurus” to share the view from their perspective on what lies ahead in 2018 — plus, give us a peek at their wish list for strengthening the environment for business growth. And, addressing the topic from a different angle, three organizations that nurture the leadership which helps create that environment share their views of key factors for strengthening the community. Communication is recognized as a critical component of business intelligence. This is increasingly true in today’s global economy, where businesses of all sizes pursue connections and opportunity across borders and around the world. In an exclusive feature article, Rosetta Stone, a leader in language training, shares insights gleaned from a recently released study on the value of a multilingual workforce to the overall success of a company. Speaking of global commerce, for our Roundtable forum, Andrew Maltz, an associate professor at ASU’s W. P. Carey School of Business and an associate at Global Logistics Development Partners, examines supply chain issues as they relate to what has become the high-profile issue of cross-border trade with Mexico. The office investment and lending landscape is the subject of the By the Numbers feature, looking at trends over the past 20 years and how Phoenix ranks against other major metropolitan markets. And the Legal feature examines the impact of some tax structures in spurring commercial investment in certain areas. This month’s issue contains the first installment of a three-part education series on benefits and strategies for businesses in helping their employees in the realm of personal finance. And debuting this month is “Startups,” a department focused on entrepreneurial activity in the Valley. With its varied content on relevant business topics, I believe our publication continues to be a valuable resource for businesses of all sizes and connects businesspeople to what matters in growing their business. We appreciate the support of this business community and look forward to another great year ahead. Entering our eighth year as a strong business brand here in the Valley, we will continue to seek greatness in developing relevant content and innovative dissemination of that content through our website (inbusinessPHX.com) and our mobile app. Wishing you a prosperous new year, I’m pleased to help bring you this issue and hope you enjoy the read.

Rick McCartney Publisher, In Business Magazine President and CEO, InMedia Company

MAGAZINE

JAN. 2018

IN BUSINESS

Shaping Up for Busines s in

THE YEAR AHEAD

2018? What can expect in business the coming year?

JANUARY 2018

Training Advances

• INBUSINESSPHX.COM

Multilingu Advantag al e THIS ISSUE

Global Chamber Alliance of Arizona Nonprofits

Trending

Changes

in Office Design

Finance Workforce& – 3-part series

$4.95 INBUSINESSPHX.COM

DON’T MISS OUT!

Get a year of In Business Magazine Subscribe now at inbusinessphx.com

Story Ideas/PR: editor@ inbusinessphx.com Business Events/ Connections: businessevents@ inbusinessphx.com

Sincerely,

Supply Chain across the U.S.-Mexico Border

CONNECT WITH US:

Let us know what you think of this issue of In Business Magazine. Email our publisher at feedback@inbusinessmag.com.

Marketing/Exposure: advertise@ inbusinessphx.com Visit us online at www.inbusinessphx.com

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JAN. 20 1 8

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VALLEY LEADERS SOUND OFF

What is your one pie-in-the-sky wish for 2018 from the standpoint of leadership fostering business growth?

FEEDBACK QUESTION: Let us know what you want to know from the Valley’s top business leaders. editor@inbusinessphx.com

DAVID C. BROWN

NEIL GIULIANO

TAMMY McLEOD

Chief Executive Officer Valley Leadership Sector: Nonprofit

President and CEO Greater Phoenix Leadership Sector: Nonprofit

President and CEO Flinn Foundation Sector: Nonprofit

As the new CEO at Valley Leadership and 60 days on the job, I have been amazed to see the level of passion and commitment our alumni and partners have to improving the Valley and the entire state. I’ve met with leaders from all sectors, and there has been a universal theme among their feedback: a thirst to do more for Phoenix and Arizona. Having grown to the nation’s fifth-largest city, Phoenix has its challenges and areas to improve. We’re special in that we get the unbridled enthusiasm of new arrivals coupled with the welcoming “can do” hospitality of our natives that makes us unlike any other city or town. Phoenix has the right mix of expertise, skill sets and spirit to lead the nation on many fronts: technology, education, startups and more. My hope for 2018, both professionally and personally, is that leaders from all sectors communicate, collaborate and coordinate to stand up and lead on hard issues. If we communicate often and honestly, collaborate intentionally and coordinate strategically, Phoenix will continue its rise.

There’s one thing we know about business with regard to strong leadership and achieving success: There’s no one thing. With that in mind, as I look into the crystal ball for 2018, my desires and expectations for business leaders focus on three areas: talent acquisition, fostering innovation and strengthening collaboration. Let’s ask, “What more can we do individually and collectively to ensure smart, savvy and future-oriented talent selects Arizona, for a new career opportunity or to remain in our great state?” We all know talented people make the difference. What more can we do to create a sustained culture of fostering innovation when it comes to solving our societal challenges? Business growth is incumbent upon societal improvement. And what will enable the next level of true collaboration — beyond the norm — and bring people together for the common good? Break the mold and collaborate in new ways for greater success. If we spend some time on these critical areas in 2018, we will solidly be on the right path for Arizona.

The Flinn Foundation is a privately endowed philanthropic organization with a straightforward mission: to improve the quality of life in Arizona, to benefit future generations. We pursue that mission through four program areas: arts and culture, the biosciences, civic leadership and higher education. Internally, we plan to deepen our community impact by making sure our programs mutually reinforce each other and by collaboration with other leaders who share a commitment to strengthening Arizona. It is common knowledge that one of Arizona’s greatest community assets is our “collaborative gene.” Our state has an established track record — from public servants who united to establish the Central Arizona Project to the visionaries who crafted Arizona’s Bioscience Roadmap — of setting aside individual interests for the good of the state as a whole. To take the next leap in an ever more competitive global economy, Arizona’s leaders, in the public sector and especially in the business community, need to recommit to that model in 2018.

Greater Phoenix Leadership gplinc.org

Tammy McLeod is president and CEO of the Flinn Foundation. She previously held several executive positions at Arizona Public Service, culminating with the role of vice president for energy resource management, entailing oversight of three company divisions. Her commitment to Arizona nonprofit organizations has included numerous board appointments, currently including the Arizona Community Foundation, the Desert Botanical Garden (vice president) and Expect More Arizona (chair).

Valley Leadership valleyleadership.org

For all past Feedbacks go online to inbusinessphx.com and see what Valley executives think on various business topics.

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David C. Brown is the CEO of Valley Leadership, whose mission is to enhance the abilities of leaders to serve and strengthen our communities. His long-standing track record of making deep impacts on the community includes serving as CEO of Home Matters and executive director of the National NeighborWorks Association. He holds a Bachelor of Science in accounting from the University of Arizona and a Master of Public Administration from the University of Southern California.

Neil Giuliano is president and CEO of Greater Phoenix Leadership — which, for 40 years, has been the forum for CEO leaders to collaborate with the government, education and philanthropy sectors to create and sustain a safe, healthy and prosperous community — returning to Phoenix from serving as CEO of San Francisco AIDS Foundation. The recipient of numerous awards and honors for his work in public policy and community activism, he served as a city councilmember and, in 1994, was the youngest person ever elected mayor of Tempe.

Sign up for the monthly In Business Magazine eNewsletter at www.inbusinessphx.com. Look for survey questions and other research on our business community.

Flinn Foundation flinn.org


BY MIKE HUNTER

QUICK AND TO THE POINT

BYTES

by Mike Hunter

Language Training Rosetta Stone offers the solution for business leaders interested in providing language training to their workforce, and free trials are available. The company works with more than 20,000 organizations worldwide to address the needs

Boutique Hotel Brings Downtown Vibe and Economic Value Downtown Scottsdale gained a new boutique hotel when Hotel Adeline opened late last month, following a $12-million renovation of the site. Developed by Los Angeles-based ESI Ventures and managed by New Orleans-based HRI Lodging, the eclectic boutique property on Scottsdale Road a mile north of Camelback Road will offer 213 guestrooms, including five spacious 700-square-foot king suites; a fullservice Mediterranean-American restaurant and lounge; a fast-casual breakfast and lunch café with a late-night grab n’ go bar; a state-ofthe-art fitness center; a lively pool scene and pool bar; buzzing common areas; and nearly 10,000 square feet of private event space. “Hotel Adeline is ESI Ventures’ first hotel in the Arizona market, so a great deal of research

Photo courtesy of Hotel Adeline (left)

learners speaking in their new language from the very first lesson, and a comprehensive assessment ensures employees are placed in the right learning path. Industry-leading mobile apps allow customers to learn anytime, anywhere, and its back-end reporting

and thought went into selecting the right property,” says Shaun Baker, general manager of Hotel Adeline. “We were initially drawn to the project’s prime location and close proximity to Scottsdale attractions. We also saw an opportunity to bring more of a downtown vibe to Old Town Scottsdale, and Hotel Adeline is the perfect property to bring our vision to life.” According to the City of Scottsdale Economic Development Department’s economic impact report, Hotel Adeline is projected to employ more than 129 people and increase local tax revenues by more than $1 million by the end of 2018. The report projects the total value of the project’s economic impact to be $31 million after one year and $83 million after five years.

suite helps administrators with program management

Hotel Adeline hoteladeline.com

infrastructure with predictable performance, security

Bilingual Training Business School Expands Compass Career & Business Solutions recently opened the doors to its new training center for small businesses or for those who are thinking about starting a business. Founded six years ago to provide free education, training and support to small-business owners across Arizona, particularly the Hispanic community, Compass CBS has realized success in helping more than 5,000 businesses and helping register more than 180 LLC businesses. The expanded facility on 3rd Street in Phoenix has become the official bilingual training center for small businesses in Arizona and in the nation, since it offers online classes that can be taken at any place and any time.

of business learners; its trusted digital solutions get

At approximately 10,000 square feet, Compass CBS’s new training center can fit up to 200 people for small conferences, with enough co-working space for about 50 to 100 entrepreneurs at a time. Compass CBS is investing in streaming technology and e-learning systems to ensure bilingual business training is accessible with mobile devices, adding a digital promotion and podcast room for its members as well as expanding its computer lab to offer Microsoft courses and industry certifications in both English and Spanish. In addition, Compass CBS provides a self-service station for visitors to register their business and trademarks. Compass Career & Business Solutions, LLC compasscbs.com

and return-on-investment calculation. [For more information, see “Language Training Benefits Business” on page 34.] rosettastone.com

Message, Meet and Call in a Single Work Stream Cisco Spark™ with AT&T enables once disparate collaboration tools to be combined in one appcentric, cloud-based service, providing a continuous work stream across multiple devices — anywhere, anytime. Enterprises can expand and simplify their and end-to-end support. Teams can also store documents in one place to more easily reference before, during and after meetings. Employees can start with instant messaging and transition to a phone call, audio conference or face-to-face video meeting in just one click. att.com/collaboration

Software for a Just Culture Outcome Engenuity recently released the software version of its popular Just Culture Algorithm™. In both singleuser and enterprise versions, the Just Culture Assessment Tool provides leaders and managers with real-time tools to more fairly and justly evaluate employee conduct. The Just Culture tools stem from 25 years of work in high-consequence industries: In aviation, it’s internationally recognized as a key to flight safety; in healthcare, it’s a cornerstone of the patient safety movement. It’s the means of creating an open safety reporting culture. outcome-eng.com

Compass Career & Business Solutions has been nationally recognized by the U.S. Hispanic Chamber of Commerce as the only Hispanicowned bilingual business development and training center in Arizona.

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QUICK AND TO THE POINT

LOOKING GOOD

Local Standouts Recognized for Achievements and Philanthropy ACHIEVEMENTS

WebPT Earns Red Herring Top 100 Award Following a rigorous three-step review process that winnowed the top 100 honorees from a sea of applicants, WebPT — the leading EMR for physical therapists, occupational therapists and speech-language pathologists — was selected as a recipient of the highly acclaimed Red Herring Top 100 Award. This world-renowned award program was established in 1996 to recognize exceptional startups from Asia, Europe and the Americas, based on criteria that include level of specialty, social contribution, disruptiveness in the market, revenue, growth rates, branding, and leadership and team quality. webpt.com.

Shea Homes Awarded Best Community Sales Collateral Shea Homes was honored with an award for Best Community Sales Collateral for its new Shea Signature community, Azure Paradise Valley, at the inaugural SAMM Award ceremony. The SAMM Awards — which stands for Builder Sales, Advertising, Marketing and Merchandising — was created by the Valley’s homebuilding/real estate industry to recognize leadership and innovation among homebuilders. azurepvliving.com

PHILANTHROPY

SUBWAY Arizona Benefits Special Olympics AZ

BY MIKE HUNTER

Striking Entertainment Trend Bowlmor AMF recently opened Arizona’s second striking Bowlero location, Bowlero Christown, revamping the former AMF Christown Lanes. The concept is to be a total entertainment center for occasions from date night, family night and birthday parties to corporate events, and even includes an inhouse team of expert event planners. Bowlero Christown’s 60 blacklight bowling lanes — the most in Phoenix at a single location — feature plush lounge seating and high-definition video walls that play everything from sporting events to classic movies. In addition to 16 VIP lanes for special events that require a more exclusive guest experience, the location has its own interactive arcade, complete with the latest video games and a large selection of old-school favorites. Bowlero’s nationally recognized menu of oversized shareables — from its five-pound, 14-inch-diameter Behemoth burger to its XXL pretzel — partners with a classic sports bar comprised of a bar and lounge area that stretches over 3,000 square feet and serves signature drinks like the Mad Mai Tai, Old-School Moscow Mule and the Dunk Tank, a fishbowl cocktail that’s perfect for sharing with friends. “This is a developing trend that we have been the leader in creating,” says Colie Edison, chief customer officer. “We have developed the ideal one-stop entertainment destination,

where guests can have fun and enjoy great food and drinks in a welcoming environment. Bowlero is all of that and more.” Bowlmor AMF is the largest owner and operator of bowling centers in the world, with more than 300 locations, including eight locations in Mexico and two in Canada, specializing in corporate and special events, as well as league and retail bowling. The company’s portfolio of bowling center brands includes Bowlero, Bowlmor Lanes, AMF Bowling Co., Brunswick Zone, and Brunswick Zone XL. Calling Phoenix a great market for the Bowlero concept that caters to people of all ages and lifestyles, Edison says, “Phoenix has become a melting pot, and we see a mix of locals and tourists coming in from Chicago and Los Angeles to vacation. Bowlero is a wellknown concept in both of those regions, so both tourists and locals love to visit Bowlero to have fun.” Bowlero bowlero.com, bowlmor.com, amf.com and bowlbrunswick.com

SUBWAY® Restaurants of Arizona donated 130 lunches Challenge benefitting Special Olympics Arizona, which challenged members of the community to rappel down a 27-story skyscraper at CityScape alongside SOAZ athletes. Over the past decade, the local restaurant group — as well as its nonprofit arm, Subway Kids & Sports of Arizona — has donated more than $75,000 in funds and food to the organization. subway.com

Parsons Foundation Benefits Arizona Girl Scouts The Bob & Renee Parsons Foundation issued a $1.6-million matching challenge for donations received through December 31, 2017, to help Girl Scouts–Arizona Cactus-Pine Council reach its goal in the $18 million Campaign for Girls in Arizona. This recent grant adds to the Parsons’ previous $5-million gift to the Campaign for Girls — the largest single gift ever received by a Girl Scout Council nationwide — that allowed for the completion of The Bob & Renee Parsons Leadership Center for Girls and Women at Camp South Mountain. tbrpf.org

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Salon Debuts Membership Model for Hair Extensions Scott and Christine Lewandowski recently launched Xtension Envy, a state-of-the-art salon offering a large selection of premium hair extensions. Identifying hair as one of the most important facets of a woman’s look, Xtension Envy offers solutions for women of all ages with varying needs: The salon offers solutions for thinning hair or hair loss due to cancer or a change in medications as well as meeting the needs of women who simply want a change by adding length, fullness, color and texture to hair, or who want to take up their style several notches for a special occasion. “As far as we know, we are the only salon offering a membership for hair extensions, which sets us apart,” says Christine Lewandowski, noting, “Typically, hair extensions are expensive and a luxury not

everyone can afford.” With member benefits including regular maintenance at discounted prices, the membership model offers members the confidence and security of knowing they will be taken care of at prices they can afford, she explains. Memberships are based on the amount of hair one wants to add — whether it’s for volume, length or just for fun — and include monthly maintenance of the hair extensions to keep them looking great. The membership also provides discounts on additional hair services such as color or haircuts, and more. Opening their salon in North Scottsdale, Lewandowski observes, “Scottsdale is a hot growth location, with an upscale and trendy population.” Xtension Envy xtensionenvy.com

Bowlmor AMF was created in 2013 following the merger of Bowlmor Lanes, an upscale bowling and entertainment company, and AMF Bowling Worldwide, and continued its growth with the acquisition of Brunswick Corporation's bowling center business in 2014.

Photo courtesy of Bowlmor AMF

to feed the volunteers at the 5th Annual Over the Edge


Your local Phoenix commercial banking team.

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Banking products and services subject to bank and credit approval. BMO Harris Commercial Bank is a trade name used by BMO Harris Bank N.A. Member FDIC


METRICS & MEASUREMENTS

The Changing Office Investment Landscape A new outlook is reflected in shifts in market and investor interests by Adel Dobriban

As we approach the 10-year mark since the recession, COMMERCIALCafé has tracked the office investment and lending landscape during a period of 20 years to highlight how the markets and investor interests have shifted and adapted to the new outlook. While some things have changed spectacularly, some have stayed the same. Here are key findings, based on data from Yardi Matrix and Moody’s Investors Services:

TOP MARKETS FOR OFFICE INVESTMENT

The Phoenix office investment market experienced one of the more significant cool-offs compared to the 1997-2007 period, as it recorded a drop in transaction volume of 27 percent (corresponding to a value of $4.67 billion), and was pushed down three positions (from No. 12 to No. 15 on our list). Striking differences at market-level include the general up-slope of the California markets; Chicago’s fall from the top three to the sixth position, with a $12-billion investment drop since 2007; and the Houston and Dallas markets’ ascension by 27 percent and 48 percent, with a $4- and $6-billion uptick respectively. This is also testament as to how top investment destinations have shifted in the past decade.

BUYER LANDSCAPE SHIFTS

The top buyer outlook has changed almost completely as well, not only regarding investment companies but also in terms of top-tier investment volumes, which registered a roughly 80-percent drop compared to the decade before the recession. Long-heralded top player on the real estate market Tishman Speyer took a serious hit after the crisis — from first place up until 2007, it didn’t even make the top 10 after 2008.

Top Markets 1997-2007

Adel Dobriban is with COMMERCIALCafé, a nationwide commercial real estate listings platform and a part of Yardi Systems that provides original research, insight and in-depth analysis of the commercial real estate market.

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First place was nabbed by institutional investor JPMorgan Asset Management. From the 1997-2007 top 10 buyer list, only three companies have remained in the post-recession top 10: Equity Office Properties Trust, Hines Interests and Beacon Capital. There was, however, considerable adjustments in their position: EOPT dropped from No. 2 to No. 7; Beacon Capital, from No. 3 to No. 10; and Hines Interests, from No. 5 to No. 8.

NEW LENDING STATUS QUO

Lending standards have also morphed, leaving behind the risky practices of the 2000s. At the market’s post-crisis peak in 2015, loan issuance was up to 583 from 259 in 2009, the lowest issuance in 20 years. The credit risk-retention rule of the Dodd-Frank Wall Street Reform and Consumer Protection Act has endeavored to reign in high-risk financial practices, stipulating a 5-percent minimum shared credit risk between both the investors and lenders. Interest rates have also aligned with the Dodd-Frank and, starting in 2010, investors and banks kept it in check — the average interest rates reached a 20-year low of 3.68 percent in 2016. Average maturity, too, has increased. It peaked in 2015 at 11 years, while, in 2008, investors were taking out loans with only seven-year maturities. COMMERCIALCafé commercialcafe.com

Top Markets 2008-2017

#

Markets

Transaction Volume

#

Markets

1

Manhattan

$118,424,179,905

1

Manhattan

Transaction Volume

2

Washington DC

$70,531,286,399

2

Washington DC

$55,134,749,993

3

Chicago

$48,171,211,122

3

Los Angeles

$45,532,699,727

4

Los Angeles

$45,815,600,797

4

Boston

$42,102,662,811

5

Boston

$40,909,139,420

5

San Francisco

$40,240,064,320

6

San Francisco

$31,335,370,185

6

Chicago

$36,572,642,082

7

Atlanta

$24,876,227,219

7

Bay Area

$35,000,331,526

8

Bay Area

$20,710,936,501

8

Seattle

$23,688,833,400

9

New Jersey

$19,321,739,413

9

Atlanta

$20,945,876,450

10

Seattle

$18,383,763,462

10

Dallas

12

Phoenix

$17,020,949,653

15

Phoenix

$128,733,581,060

$19,449,190,807 $12,346,354,451 Source: COMMERCIALCafé

The complete office investment report is available at bit.ly/investment-recession


ENTREPRENEURS & INNOVATORS

Scottsdale-based Startup One of 15 Invited to TechCrunch Scottsdale-based eTrack Tech was one of just 15 startup companies worldwide invited to the 2017 TechCrunch Disrupt Berlin’s Startup Battlefield Competition to present its solution for heavy equipment fleet management. Excited about the opportunity to launch her company’s forklift solution at the competition, “along with other disruptive startups,” and demonstrate the technology to potential investors across the globe, co-founder Barbara Timm-Brock says, “We are confident that our proprietary IoT solutions will increase productivity and reduce repair costs for millions of pieces of equipment, and transform heavy equipment fleet management.” Each year, more than $140 billion worldwide is spent on repair and maintenance of heavy equipment, most of which goes toward reactive repair costs. Seeing a need for fleet owners and operators to become more proactive in their equipment condition, eTrack developed proprietary multifunctional sensor sets and custom algorithms in a distributed mobile computing package that delivers critical Internet of Things data from edge to cloud. Existing fleet tracking solutions are limited to reminders with no alerts, predictive maintenance, or operator tracking; OEM (original equipment manufacturer) solutions do not work across brands, ages and types of trucks. eTrack provides

a comprehensive solution to address these needs, with no platform investment, utilizing IoT-enabled technology to provide lower-cost predictive solutions and mobile tracking for the commercial repair and maintenance industry. —Mike Hunter eTrack Tech etracktech.com

Photo courtesy of eTrack Tech

Valley Startups Part of Inaugural Cohort to China Everyone always talks about the importance of networking for business growth and development, but what if you took it international? This past December, 50 American entrepreneurs from across the U.S. were selected to travel to Shenzhen, China, to meet, learn from, and build mutually beneficial relationships with 50 Chinese entrepreneurs in the inaugural U.S.-China Youth Forum on Entrepreneurship and Innovation. Not only did this forum aim to build those peer-topeer relationships by exposing these entrepreneurs on both sides of the Pacific to new cultures, traditions and economic trends, it also opened them to new ideas and possibilities for business expansion in a way only global exposure can do. The project launched as a result of a collaboration between the U.S. State Department and the All-China Youth Federation to promote shared economic prosperity with globalization. Speaking at the Forum on various growth, economic and global partnership topics were Airbnb co-founder Nate Blecharczyk, U.S. Ambassador Terry Branstad, and Chinese officials and highlevel entrepreneurs. The Forum also provided an opportunity for U.S. and Chinese entrepreneurs, incubators and VCs to connect to share insights on their respective innovation-driven ecosystems, as well as discuss direct investment opportunities.

Metro Phoenix sent 15 of the 50 American entrepreneurs who took part in the U.S.China Youth Forum on Entrepreneurship and Innovation. • Molly Benz, GnarWalz • Neil Buckley, chief software architect • Beth Cochran, Wired PR • Sophia Collier, Envisiondreams XR • Crystal Hayden, Runsphere • Heidi Jannenga, WebPT • Jared Korinko, Secret Travel • Sarah McBryan, Barrow Innovation Center • Patrick McFarland, Korwave • Tracy Miller, SANS • Sonny Patel, Insurmi • Jenny Poon, Co+Hoots • David Richardson, bioSyntagma • Nic Troffer, FINTECK

Another strong undercurrent of the Forum was showcasing the importance of inclusive innovation through racial, ethnic and geographical diversity; women’s empowerment; and socioeconomic heterogeneity. Many Valley entrepreneurs, whose innovations have helped strengthen our own startup community, were part of this inaugural cohort. —Beth Cochran U.S.-China Youth Forum on Entrepreneurship and Innovation youthinnovationalliance.org

• Madeline Tyson, SCORE Algae William Brashears, Ph.D., director of Global Initiatives at Arizona State University, and Ji Mi Choi, associate vice president at ASU, were instrumental in putting this forum together.

TechCrunch Disrupt is the world’s leading authority in debuting revolutionary startups that introduce game-changing technologies and discussing what’s top of mind for the tech industry’s key innovators. techcrunch.com/event-info/disrupt-berlin-startup-alley

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PROPERTY, GROWTH AND LOCATION

Rethinking the Office Space: Trends to Adopt in 2018

CBRE’s recently opened state-of-the-art office at The Esplanade in Phoenix is part of the company’s global “Workplace360” initiative, and, at 75,000 square feet, is its largest. Guests, clients and employees enter the space in what’s known as The Heart, where they will be greeted by concierge staff. The high-tech common area features both a media wall and an immersive, multi-screen presentation tool called Liquid Galaxy, which allows the user to showcase 3D building models, panoramic interior photos, analytical data and mapping technology and provide street-level-view “walking tours” around a given location. Health and wellness components are part of the design, and, adding a touch of local flair, the new space incorporates artwork from Phoenixarea talent, including painters Niki Woehler, Khristine Leatherman and Holly Anderson; mixed media artist Alan Bur Johnson; and abstract photographer Johnny Kerr. —Mike Hunter

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private and collaboration-friendly work spaces to meet their changing needs throughout the day. Adopting practices like “free-addressing” allows companies to rethink space utilization. With fewer rows of cubicles and offices reserves for C-suite executives, there is more space for collaboration-friendly space and amenities that enhance the employee experience. For example, The Quad, a creative office project in Scottsdale, and The Monroe in Downtown Phoenix, are two projects designed with the employee experience in mind. Both properties feature open floor plates that cater to the reimagined workplace. Collaborative areas connected by property-wide Wi-Fi, tenant lounges for events or networking, fitness centers and gaming areas are just a few of the amenities workers prefer to have today. Office space today is a depiction of a company’s culture and should be conducive to the way people work in today’s highly connected and mobile world. Shifting to a flexible, tech-enabled and experience-centered office space can play a critical role in employee retention, engagement and productivity, which, in turn, can drive better business performance. —Craig Henig, senior managing director of the Southwest Market Area for CBRE (www.cbre.com).

GET REAL

Pima Center Flex Full

Investor Enters Phoenix Market

Luxury Lofts within Westgate

MainSpring Capital Group, developer of

Denver-based Allante Properties, LLC has

Leasing began last month for the 76 loft-

the 232-acre master-planned Pima Center,

entered the Phoenix investment market

style luxury apartments within Westgate

has fully leased the latest of its two flex

with the $8,750,000 purchase of Apex off

Entertainment District as construction nears

industrial buildings at the business park

7th Street, a seven-building apartment

completion on the first residential living

— the first industrial project built in the

community at 948 E. Devonshire Ave in the

community located in the heart of the West

North Scottsdale submarket in nearly

heart of Uptown Phoenix.

Valley’s premier entertainment district.

10 years. Both buildings were fully leased prior to completion. The two buildings, each containing

“This acquisition offered an outstanding

Opening February 1, The Lofts at Westgate

opportunity to participate in the

include one- and two-bedroom residences

renaissance of Uptown Phoenix. The

ranging in size from 646 to 1,479 square feet.

approximately 75,000 square feet of flex

area has become increasingly appealing

industrial space, were started in late 2016.

to residential tenants,” says Bill Hahn,

Westgate Entertainment District will

“These may be the last fully-functional

executive vice president of Colliers

exemplify an urban mixed-use lifestyle

industrial buildings of this type constructed

International in Greater Phoenix.

destination, one that puts the best in

in North Scottsdale,” says Curtis Brown,

Says Trevor Koskovich, who worked with

“When The Lofts at Westgate open,

nightlife, restaurants, shopping, sporting

principal with MainSpring Capital Group. “This

Hahn to negotiate the transaction, “Very few

events, concerts and offices at your

submarket simply does not have the available

properties of this size and location caliber

doorstep,” says Jeff Teetsel, development

land and zoning to provide growth in the

are available in the market.” colliers.com

manager of Westgate Entertainment

supply of this product. pimacenter.com

In a 2017 study, 86 percent of corporate occupiers said they were reinventing or adapting workplace standards to meet shifting employee tastes and preferences. cbre.com

District. TheLoftsatWestgate.com

Photos courtesy of MainSpring Capital Group, Allante Properties and Westgate Entertainment (bottom, l to r)

CBRE’S ‘WORKPLACE360’ INITIATIVE

As technology continues to shape the world around us, people in today’s workforce have become more mobile and less tethered to their desks than ever before. Files can be accessed virtually anywhere thanks to cloud storage while cubicles have given way to smart workstations that allow employees to choose how they work. Technological enhancements are continually changing how employees interact with the physical space around them, and businesses that understand how employees want to work can create successful workplaces that drive productivity and engagement. Corporate occupiers agree: Eighty-six percent said they were reinventing or adapting workplace standards to meet shifting employee tastes and preferences, according to a 2017 CBRE workplace survey. CBRE debuted its new Phoenix office in December 2017, and it adheres to the company’s Workplace360 initiative, which promotes mobility, flexibility and productivity through technology-enabled and paperless offices. Thanks to features like Web-based storage solutions, messaging and meeting applications, and plug-and-play work stations, employees are no longer confined to assigned desks, but instead can move freely around the office and choose from a variety of different


SAME FIRM, NEW NAME. THE FRUTKIN LAW FIRM IS NOW RADIX LAW.

The word Radix in Latin means “root�: the root of a tree, the root of knowledge, or the root of a number. Our new name reflects our values. We are a business law firm that knows the law, helps our clients pursue opportunities and deal with challenges, and we are rooted right here in Arizona.

15205 N. Kierland Blvd., Suite 200 Scottsdale, AZ 85254 Phone: (602) 606-9300 radixlaw.com

January is National Mentoring Month. Today, and every day, we thank our New Pathways for Youth mentors for their commitment to our most at risk youth. They are creating new possibilities daily and we are grateful. Please thank a mentor or better yet, become one! New Pathways has 85 youth in Maricopa County waiting for their mentor right now. To learn more go to npfy.org or call 602-258-1012.

Transform a LIFE. Be a MENTOR.


YOUR BENEFIT IN BUSINESS

WELL WELL WELL

by Mike Hunter

A Direct Link: The Connection between Flu Season and the Bottom Line We all hate the feeling of coming down with a cold or flu while at work. But for businesses, office illness is, in fact, a financial concern. The flu results in 111 million sick days a year, which comes to $10.4 million in direct medical costs for American businesses. How can businesses improve their employees’ health and avoid unnecessary cost? Make an office plan. For those who haven’t already, flu season is a great time to meet with the maintenance team and check in on issues like scheduling carpet extractions, using influenzagrade cleaning products, and avoiding crosscontamination. These are extremely important in keeping standards high and offices healthy. Make good habits simple. Businesses should provide resources like hand sanitizer and wipes in common spaces. In our Phoenix headquarters, we have these items at our front desk and in the conference room year-round. Know the germ zones. Being thorough means addressing hidden places like the buttons on the copier machine or the interior of the elevator. Share less! Holidays are a time for giving, but viruses can live on surfaces for 48 hours. It’s worth thinking twice before borrowing that pen or stapler. Keeping a workforce healthy takes effort across the team. However, by aligning on these tips, businesses can improve their chances of keeping their workforce flu-free. —Tobi Waller, regional director at OpenWorks (http://openworksweb.com) OpenWorks is guided by a simple philosophy: A cleaner, safer and healthier environment means a more productive workplace. As one of the country’s leading commercial cleaning franchises serving more than 2,500 facilities and 30 million square feet of space daily, OpenWorks offers integrated facility services through its local Preferred Partners and Franchisees. Since opening its doors in Phoenix, Ariz., in 1983, the company has grown to include 415 franchise locations in markets across the country openworksweb.com

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May

16

Mental Illness in the Workplace Statistics show that one in four adults has a diagnosable mental illness. More than 50 percent of those with mental illness are not being treated. How does this impact their workplace? Stress and depression are two of the largest causes of absenteeism in our workplaces. It impacts our bottom line and causes difficulties for our employees. According to research by Harvard University Medical School, untreated mental illness costs the U.S. at least $105 billion in lost productivity each year. Despite the prevalence of mental illness and the high cost to employers, most workplaces do very little to improve their organization’s mental health. Employers can cut their costs; increase their employees’ health; and create a productive, appreciative and respectful workforce by building mental health in their workplace. Here are some ways employers can support people living with mental illness: Talk about it. Bring in an expert who can discuss mental health, along with the stigma associated with it. Learn to recognize it. It is important that employees learn to recognize they’re experiencing a mental illness. If they don’t recognize it, they will continue to suffer in silence. Employees can take advantage of a free, anonymous mental health screening provided by Mental Health America of Arizona. Assist employees in addressing mental health issues. Create policies that support emotional wellness and treatment. Provide employees with available resources. Bring in an expert who can train managers on supervising those with mental illness.

Foster and model a healthy environment. Encourage exercise, offer stress reduction workshops, allow for breaks and discourage the need to respond to work-related email from home. Management should model a healthy environment for its team. Create and enforce work-life balance policies. Provide easy access to Employee Assistance Programs (EAPs). EAPs can support employees in dealing with mental health issues, along with stress-related pressures. Make reasonable accommodations. Just as we accommodate an employee with back injuries, we need to accommodate those with mental health needs. Some accommodations could include switching around their work schedule, providing a safe work station or approving a leave of absence. We need to learn how to create an environment that works for people who have specific needs. Check company insurance coverage. Companies should ensure they are providing adequate coverage. The Federal Parity Law requires health insurance plans to provide coverage of behavioral health benefits and physical health benefits equally. Cutting dollars for mental healthcare can often increase overall medical costs. Promoting a mentally healthy workplace can be one of the most beneficial steps an employer can take to improve its organization — the sooner, the better! —Kristina Sabetta, executive director of Mental Health America of Arizona (www.mhaarizona.org), which offers a free, work health survey to help businesses determine whether they have a healthy or unhealthy work environment, along with training services and resources on workplace wellness.

Mental Health America of Arizona’s upcoming Seeds Conference on behavioral health, to be held May 16 in Glendale, will focus on innovative strategies and interventions being used in the education system, the workplace and the community. mhaarizona.org


INNOVATIONS FOR BUSINESS by Mike Hunter

‘Ask Avnet’ and ‘Engineer on Demand’ Ask Avnet encompasses a range of tools and services, including an intelligent agent, customer service, technical support and a new Engineer on Demand service. The automated assistant provides users with 24/7 support and a single point of entry for basic inquiries regarding product search and order status, and seamlessly connects customers to relevant content on Hackster.io and the element14 community. If a question is more complex, Ask Avnet can leverage the information from its interactions to connect the user to the appropriate support channel — customer service, technical support or an Engineer on Demand, depending on the nature of the query. The Engineer on Demand service also enables customers to request one-on-one virtual appointments with application engineers. Since it is built on artificial intelligence technology, Ask Avnet is constantly learning to improve the user experience. Through this continued open beta testing on avnet.com, interactions with customers and visitors will have the effect of building further intelligence into the system. In addition to responding to customer inquiries, Ask Avnet proactively engages visitors to avnet.com with helpful prompts and relevant information. Customers ranging from professional engineers to procurement specialists to makers can use Ask Avnet to find the critical insights and information they need to bring their technology solutions to market.  Currently, Ask Avnet speaks in English. “Since English continues to be the most prevalent language across the industry, Ask Avnet assists most users,” says Nishant Nishant, Avnet’s head of digital strategy. “When we move into additional geographies, Ask Avnet will have a solid foundation to expand support in other languages.” avnet.com

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Avnet Pioneers Digital Platform for Technology Distribution “Ask Avnet” is the first digital platform for technology distribution, affording access to the engineering knowledge base across the vast ecosystem of leading global technology distributor Avnet, including Hackster.io and element14. After five months of closed beta testing, Avnet recently moved the tool to open beta, rolling it out first to all avnet.com users in the Americas. The new tool leverages artificial intelligence and cloud computing technologies. Explains Nishant Nishant, Avnet’s head of digital strategy, “Advancements in these technologies have provided the ability to scale more rapidly and address complex customer user cases that, until recently, wouldn’t have been possible.” Focusing on one of the most used features on avnet.com, the project started with components, specifically for product search — to find alternatives and filter related questions.

Cognitive services enable Ask Avnet to constantly learn as it encounters different conversations. Additionally, Ask Avnet can intelligently interpret customer needs, and, if it cannot address them itself, it seamlessly connects the customer to an Avnet customer service or technical support expert. Ask Avnet is built on the foundation of Microsoft’s Language Understanding Intelligent Service (LUIS), using machine learning that can receive user input in natural language and extract meaning from it. “Once we train LUIS, for example, in terms of what to listen for in a particular question, it will recognize similar utterances from users and ‘self learn,’” Nishant explains. “It also identifies the questions that it is relatively unsure of and asks follow-up questions to users while giving a confidence score for internal tracking. This continuous learning process helps LUIS to improve on its intelligence over a period of time.” —RaeAnne Marsh Avnet avnet.com

Valley Golf Course Embraces Future with High-Tech Golf Cars Quintero Golf Club in Peoria has become one of the first courses in the country to implement a new fleet of state-of-the-art golf cars from Textron Fleet Management. Each of the ninety vehicles is equipped with a touchscreen video monitor that allows players to track their GPS location on the map, place food orders delivered to the course, keep score, communicate with the golf shop, and more. Perhaps most importantly, it helps the crew keep track of the pace each golfer is playing. “We have an app downloaded on our phones and computers, so we know where our players are at any moment. If a group is going slower than the pace of play, we get an instant alert and can send a team out to move things along,” says Mike Poe, general manager at Quintero Golf Club. “There are so many advantages to these new golf cars for both the players and the crew, it was a really easy decision to make this switch.” Noting the vehicles operate on lithium batteries, which take a fraction of the time to fully charge

and help preserve the environment, he adds, “It’s really an unbeatable energy saver.” Quintero, ranked by Golf Digest among “America’s 100 Greatest Public Courses” for the 2017 and 2018 seasons, was the highest-ranked course in Arizona on the list. —Lauren Vargas Quintero Golf Club quinterogolf.com Textron Fleet Management textronfleetmgmt.com

Ask Avnet is built on artificial intelligence, technology that enables it to constantly learn to improve the user experience. With continued open beta testing on avnet.com, interactions with customers and visitors will have the effect of building further intelligence into the system.

Photo courtesy of Quintero Golf Club

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LAW MATTERS TO BUSINESS

Tax Incentives: What Do Cities Offer? Pros and cons of the Government Property Lease Excise Tax by Thomas C. Arendt

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Shaping Up for Busines s in

THE YEAR AHEAD

2018? What can expect in business the coming year?

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Thomas C. Arendt is an attorney in the real estate department of law firm Jennings, Strouss & Salmon. He is experienced in acquisition and development, leasing, and real estate workouts and foreclosures. Arendt’s representation has included various groundup developments and retail centers, as well as banks and lenders in deed of trust, and mezzanine projects. He is a Certified Real Estate Specialist with the Arizona State Bar Board of Legal Specialization and a member of the State Bar’s Real Estate Advisory Commission. jsslaw.com

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The use of tax abatement between a private developer and a city with respect to a qualifying project has become a popular topic over the last several years as infill development in the Valley increases. In certain circumstances — when the arrangement occurs in a so-called single central business district of a city — the municipality may abate the government property lease excise tax for a period of up to eight years. This arrangement has become known as “GPLET” (Government Property Lease Excise Tax), which refers to the beneficial abatement period where no such excise tax is paid. Once the abatement period ends, the obligation to pay the excise tax is reinstated and continues for the life of the transaction. Only a city can lawfully create a GPLET arrangement, including the abatement. The terms of the arrangement will be open for negotiation between the city and the proposed developer. For example, the GPLET abatement may be (substantially) less than eight years. Another issue is the different distributions of GPLET excise tax and property tax revenue. An example is school districts: Such negotiation may include a separate payment agreement to a school district to adjust for the impact of the GPLET. A further part of these discussions can include the imposition by the city of items, such as real property use restrictions or other covenants, that may or may not survive the termination of the GPLET arrangement and the conveyance of the property back to the owner. The obvious primary benefit is the tax abatement. Unlike many states and other countries, Arizona does not have tax increment financing, or “TIF,” as a public subsidiary for redevelopment and similar projects. The primary vehicle in Arizona for a redevelopment project or infill is a GPLET. Various controversies regarding GPLET arrangements have been around for some time. In June of 2010, substantial changes were made to the GPLET laws, creating an “old rate” and “new rate” for the per-square-foot GPLET excise tax. To oversimplify, the new rate carries an inflation factor not found in the old rate. Also, the city’s obligations in creating the GPLET have become more complex over time. In both 2010 and 2016, the Arizona State Legislature created more procedural rules, notification and study requirements for the city. It can be important that developers check their city’s GPLET boundary, as a GPLET tax abatement cannot occur just anywhere in a city. The abatement may occur only for government property improvements located in a single central business district designated by that city.

COMPLICATIONS IN THE GPLET TRANSACTION

Complexity of Paperwork — For the GPLET to occur in the single central business district, the land must be owned by the municipality for the entire term of the arrangement. That real property includes the applicable governmental property improvement (e.g., the structure, such as an office, warehouse or apartments) built by the developer. If the city is not the owner

A city’s GPLET tax abatement may occur only for government property improvements located in a single central business district designated by that city.

of the land, the property must be taken into ownership by the city through a deed and resulting development lease where the developer is the prime lessee. This arrangement is typically documented by a development agreement that outlines the terms, together with the development lease, between the city and the developer. While typically not an issue, the statute does have a second component for abatement: The government property improvement as constructed will increase the property’s value by at least 100 percent. Lender Concerns — The construction and take out lenders will have an array of concerns not encountered in a typical fee ownership construction financing arrangement. Much like any ground lease transaction between private parties, there are three parties to the loan financing — the lender, the borrower/lessee and the city/lessor. There are, inevitably, adjustments or supplemental agreements that are needed to accommodate the loan. While the city and its lawyers are very knowledgeable in this area, the process may take a fair amount of time and is subject to a further overlay of things a city can or cannot do as a governmental agency, including limitations contained in the city’s charter with respect to leases, or the provisions of the city’s ordinance or resolution that created the GPLET for the particular transaction. Nothing Lasts Forever — The excise tax arrangement must end at some point, with the property being conveyed immediately from the city to the then-”owner” in the manner outlined in the development lease and related development agreement. This unwinding process can be complicated. In 2015, an Arizona appeals court case demonstrated the complexity of the “reentry” of the property into private hands and the property tax laws by confirming an adverse tax result for an owner. Timing of this conveyance can be important.


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Shaping Up for Business in

2018? What can business expect in the coming year? by RaeAnne Marsh


A

Among business’s top five concerns are labor, capital and customers. Top of the list is qualified workers — therefore, says nationally recognized W. P. Carey School of Business economics professor Lee McPheters, “the education system is important.” He believes cutbacks in education funding could impact the workforce. Arizona is rightly proud of its universities, but the number of graduates they produce is offset by the number of people moving here without a college degree, according to the American Communities Survey. The West in general, and Phoenix in particular, tends to attract college graduates, but Arizona’s climate and lifestyle make it a magnet for population generally. This may seem to bode well for the “customers” aspect of business needs, as JPMorgan Chase chief economist Anthony Chan explains that the U.S. equity market’s record-breaking year in 2017 was a catalyst that allowed people to “live their dream,” including retiring and moving here. But Dr. McPheters notes that, with Arizona’s per capita personal income 80 percent of the national average, the purchasing power is not as strong. Venture capital also lags behind Colorado and California, he observes. Dr. McPheters expects to see slower job growth in 2018, as numbers

trend to a sustainable “new normal” for the state and Phoenix. He points out that manufacturing here, for instance — one of the major focus areas for economic development — is more tech-oriented and therefore not one to generate big employment growth. Noting that seven of the top 10 states for job growth are in the West, Dr. McPheters sees Arizona being in the lower half of that top 10. We are No. 1 in the country for financial services and — despite industry fears over the minimum wage increase last January — No. 1 also in food services. Other strong drivers of job growth are trucking and healthcare, the latter not only being one of the largest employment categories but consisting of tremendous diversity, with annual job income ranging from $25,000 to $250,000. To zero in more specifically on the Greater Phoenix area, In Business Magazine asked leaders of economic development and business organizations to discuss what they see ahead for business in 2018. (In Business Magazine also reached out to the top organizations whose mission is to help develop the leaders who create the positive community and business environment. Their responses are presented in Feedback, on page 12.)

The Dynamics of

Greater Phoenix

WHAT IS ON THE RADAR TO BUILD BUSINESS IN THE GREATER PHOENIX AREA?

Glenn Hamer

President and CEO

Arizona Chamber of Commerce and Industry azchamber.com

Federal efforts such as tax reform and a modernization of the North American Free Trade Agreement are poised to positively impact Arizona and its business and economic climate. In the last several years, Arizona has made a number of targeted changes to its tax system that have strengthened the state’s overall competitiveness. Anticipating passage of a final tax reform package by Congress, Arizona stands to become even more competitive in the race to attract business and grow jobs. National tax reform paired with a NAFTA better aligned with today’s economy sets Arizona up to be a leading state for business growth. Our state policy leaders — Governor Doug Ducey, members of the Legislature, mayors — are united in their belief that this

vital trade agreement must be preserved. As a border state, we are already a top trading partner with Mexico, and bringing NAFTA into the 21st century will open the door for additional export-oriented jobs. Locally, Arizona has emerged as a training ground for autonomous vehicle development — standing in stark contrast to neighboring states that proved unfriendly to this emerging technology. Rolling back regulations to welcome research and development for new disruptive industries is standard operating procedure in Arizona. This approach has sent a signal that Arizona is innovative and has a regulatory environment to match. We anticipate this reputation will be attractive to other innovators looking for the best possible place to grow and invest.

WHAT IS YOUR ONE PIE-IN-THE-SKY WISH FOR 2018 FROM THE STANDPOINT OF ECONOMIC DEVELOPMENT THAT FOSTERS BUSINESS GROWTH? Water is economic development. It’s essential to our state’s ability to continue to grow and prosper, so it’s rightly top of mind for business and policy leaders. We are supportive of Governor Ducey’s efforts to bring public and private stakeholders together to ensure Arizona’s water security, including reliable access to Colorado River water and

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securing Lake Mead water levels for the future. I’m confident that, with the governor’s leadership and the input of committed legislative and business community stakeholders, Arizona will wisely update its water laws in 2018 to provide the certainty necessary to continue our economic growth.

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WHAT IS ON THE RADAR TO BUILD BUSINESS IN THE GREATER PHOENIX AREA?

Chris Camacho President and CEO Greater Phoenix Economic Council gpec.org

This spring, the Economic Innovation Group released a report, Dynamism in Retreat (http://bit.ly/dynamism-retreat), that provided in-depth analysis of how dynamic metropolitan regions are in relation to the commercialization of new ideas and business models. Fortunately, the report lists metro Phoenix 11th on the list of the 20 metro areas with the highest average startup rates during the recovery. Industry leaders such as Intel and Honeywell have had decades of presence in the market, but new ideas are forming, leading to spinoffs that are developing new technologies. Across the Valley, whether it is taking place at co-working spaces or maker spaces, or even at meet-ups, people are getting together and sharing ideas on how to spur innovation and develop new ideas — and new companies. That activity is a large part of what makes this market so attractive. A robust entrepreneurial ecosystem in place that supports business formation in high-value industries. Through coalitions such as #yesPHX, people have availed themselves

to provide resources to entrepreneurs and startups, ranging from mentorship to capital, helping reduce the mortality rate of emerging businesses. At the Greater Phoenix Economic Council, our mission is to market the region as a destination for business growth and success on behalf of our 22 member communities and Maricopa County, and the more than 160 private-sector stakeholders, but also to enhance the competitiveness of the Greater Phoenix region. Earlier this year GPEC launched a new campaign called The Connected Place, that served to create an industry awareness around the Internet of Things and sensor-enabled technology industry activity in the market. From autonomous vehicles to wearable devices, and industry automation to cybersecurity, companies in Greater Phoenix are testing and deploying innovative technologies that are changing the way we live and do business.

WHAT IS YOUR ONE PIE-IN-THE-SKY WISH FOR 2018 FROM THE STANDPOINT OF ECONOMIC DEVELOPMENT THAT FOSTERS BUSINESS GROWTH? Although in its early stages of development, talks have begun on launching a coordinated intentional plan for Greater Phoenix to become a place where smart infrastructure is deployed within our communities. Technologies such as installing LED lights with sensor applications that detect when a light is out, thus notifying the right department within a city, or sensors that detect water leaks, preventing major waterline breaks and costly road repairs, are examples of how cities can use smart technologies. The application of such technologies in not just one community but across the entire region is the first step in

promoting Greater phoenix as America’s first “smart region.” This infrastructure is forward thinking and innovative, as are the business and civic leaders across the region who are engaged in this conversation. Metro Phoenix has a strong foundation for supporting business growth and expansion, the type of business environment that keeps the region on the map as a place where businesses can go to scale. Efforts to continue to build upon that foundation make it possible to work on higherimpact strategies that will differentiate the market, making it stand out even more to companies looking to expand.

WHAT IS ON THE RADAR TO BUILD BUSINESS IN THE GREATER PHOENIX AREA?

Terri Kimble

President and CEO

Chandler Chamber of Commerce chandlerchamber.com Spokesperson East Valley Chambers of Commerce Alliance evcca.org

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The East Valley, and Chandler in particular, are heavily focused on technology right now. We are attracting the hightech and financial companies, and even autonomous vehicles are touching many East Valley companies. As a state, we have made it possible for many autonomous vehicle companies to set up shop and that has ushered in a boom of sorts. Technology initiates communication and the ability to connect. The Chandler Chamber performs routine business retention visits with our top 100 companies to better gage the

current business climate. The better government, business and community connect with each other promotes critically important feedback for growth, development and expansion. Optima Tax Relief out of California just chose to expand to Chandler, due to its strong workforce and low operating costs. Also, surprisingly, education. The Chandler Unified School District is one of the top districts in the state. This is incredibly important when companies are looking to relocate because they want value for their employees.

WHAT IS YOUR ONE PIE-IN-THE-SKY WISH FOR 2018 FROM THE STANDPOINT OF ECONOMIC DEVELOPMENT THAT FOSTERS BUSINESS GROWTH? Chandler has discovered how to use changes in the economic climate to spur renewal and innovative thinking. This has taken shape with repurposing property and knowing how to sell the city itself. Right now, the City of Chandler is working on the northern part of Arizona Avenue and other pockets. Changes with these sorts of projects may include, to name just

a few, rezoning, reactivation of a vacant building or changing a shopping center to mixed-use. Recently, we have seen many companies relocate to Chandler. Rogers Corp relocated its headquarters here. And established companies like Orbital ATK, Intel and Microchip have expanded of already-existing divisions.

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WHAT IS ON THE RADAR TO BUILD BUSINESS IN THE GREATER PHOENIX AREA?

Sintra Hoffman President and CEO WESTMARC westmarc.org

One of Arizona’s key advantages is our geographical location and proximity to California and ports of entry to the United States. Specifically, the West Valley is perfectly positioned to reap the benefits of business relocation from California due to a strong transportation network in this region. Infrastructure creates the spine for economic development, and key investments in technology, water and energy have prepared the West Valley for not just one smart city but a collection of smart cities adding up to 3,000 square miles west of I-17. Forty-three percent of the growth over the next 25 years will occur in the West Valley, and, for this reason, business and political leaders must pay keen attention to the opportunities in this area. This region, and specifically the West Valley, has an incredible talent pool that rivals our competitors across the country. We are fortunate to have the right mix of great weather and quality-of-life amenities that continue to attract and grow our resident base, i.e. our workforce talent. The West Valley is a region that is growing younger at rapid pace. Unfortunately, there’s a perception that this region is a retirement community. The reality is, the West Valley’s population includes 1.6 million residents with 62 percent being workforce age. This changing statistic has encouraged

great communication and coordination between business and education. Over the past two years, WESTMARC has been facilitating key connections and conversations to ensure West Valley talent fits the needs of our targeted industries. Fortunately, we have experienced an education community that shares the vision of graduating students in high-demand areas who are immediately employable. In other words, programming is increasingly geared toward meeting the specific needs of existing and emerging businesses. Today, the West Valley is fortunate to have a strong, talented workforce in healthcare, manufacturing and advanced business skills. Thirty-seven percent of healthcare workers in Maricopa County live in the West Valley! Similarly, thirty-four percent of the advanced business (finance; insurance) workforce lives in the West Valley, while only 12 percent of these jobs are currently located here. Translation: Companies locating here have a tremendous benefit with a strong, talented workforce, ready to work close to home! Other key industries are manufacturing, information technology and aerospace. Again, California’s regulatory environment, infrastructure investments and Luke Air Force Base all within this region is the is the right mix to support economic growth in the West Valley.

WHAT IS YOUR ONE PIE-IN-THE-SKY WISH FOR 2018 FROM THE STANDPOINT OF ECONOMIC DEVELOPMENT THAT FOSTERS BUSINESS GROWTH? When you ask for a pie-in-the-sky wish, I think “limitless!” I’m sure many of my professional colleagues will agree that increased investments to strengthen the workforce talent pipeline and, therefore, Arizona’s competitiveness is the No. 1 wish for 2018 and beyond. We hear loud and clear that a strong education system is near the top of the list for businesses when considering new locations. As our elected leaders work toward a variety of funding solutions at the K-12 level, the business community also plays an important role in developing the overall pipeline. Constructive connections and dialog between business and education is key in providing internship programs, focused job training and on-the-job mentoring. Through this dialogue, specific programming in post-secondary and Career Technical Education schools increasingly lead to graduating students

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who are employable within targeted industries. In 2017, WESTMARC facilitated several round-table discussions with healthcare recruiters and education partners. As a result of these discussions, we were able to identify the growing need for experienced surgical techs in our hospitals. So, how do you graduate an experienced surgical tech? You provide internship opportunities to students while in school, then start them alongside experienced surgical techs. On-the-job mentoring is key to success. It’s no secret that most of our key industries are experiencing shortages in talent. But the foundational industry has been hit hardest — the teachers. I applaud the variety of efforts and conversations toward a solution, and my wish is that a combination of these efforts will move the needle in a positive direction in 2018!

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WHAT IS ON THE RADAR TO BUILD BUSINESS IN THE GREATER PHOENIX AREA?

Sandra Watson President and CEO

Arizona Commerce Authority azcommerce.com

Arizona continues to be in the national spotlight for our strong economic development momentum. This is not only a result of our success in attracting businesses from outside the state — notably, from California — but also due to the growth of our existing businesses and entrepreneurial activity. In fact, research shows that 80 percent of new jobs come from the growth of businesses already within the community. Aerospace and defense, bioscience and healthcare, business and financial services, technology and innovation, and manufacturing — industry sectors critical to maintaining the diversity of our state economy and which the Arizona Commerce Authority primarily focuses on developing — all continue to add jobs. In fact, growth from 2012 to 2016 has been impressive, according to industry data from EMSI. In the business and financial services industry, for instance, insurers alone have added more than 13,000 jobs statewide since 2012, a growth rate of 38 percent. Other particularly bright spots include cybersecurity, banking and investment firms and business support services. Some of the growing Arizona employers in this sector are Bank of the West, Kudelski, Upgrade, Northern Trust, Silicon Valley Bank, USAA, and Quicken Loans. And businesses in the data processing and hosting services industry grew by nearly 70 percent in our state from 2012 to 2016. Apple, GoDaddy and CyrusOne are among the companies that have added Arizona jobs in this industry. In a very positive indicator of Arizona’s economic strength, our unemployment rate has declined to 4.5 percent, the lowest it has been since 2007, according to figures from the Arizona Office of Economic Opportunity. Measures of personal income, employment, Gross State Product and population are all growing as we head into 2018. The ACA will continue to focus on supporting and developing existing Arizona businesses. Our comprehensive suite of programs (azcommerce.com/programs) is available to

businesses of all sizes. During the last legislative session, the Angel Tax Credit Program was reauthorized. This will allow for a credit of up to 35 percent for qualified angel investments in companies certified by the ACA. This program is essential in supporting the continued growth of Arizona’s innovation ecosystem. In partnership with the Greater Phoenix Chamber of Commerce, the City of Phoenix and Maricopa County, the ACA will also continue to support business expansion through our Phoenix Forward initiative (phoenixchamber.com/aboutphoenix-forward). This effort, launched in 2015, is designed to strengthen our region’s overall competitiveness by connecting businesses to resources, gathering industry intelligence, influencing public policy and promoting the Greater Phoenix region as the economic hub of the Southwest. The ACA’s RevAZ program (azcommerce.com/programs/ rev-az), which serves as Arizona’s Manufacturing Extension Partnership, provides assistance to help small and mediumsized Arizona businesses maximize their success. RevAZ provides customized operational and business solutions, as well as concrete advice and training. In addition, the ACA’s recently launched five-year business plan places a strong emphasis on developing emerging technologies in our state. The plan, titled “Leveraging NextGen Tech Trends to Grow Arizona’s Economy,” outlines an economic development strategy focused on 10 technology trend areas. Arizona has established a global leadership position in the autonomous vehicles sector, and we are also recognized for our strengths in cybersecurity, the Internet of Things, renewable energy, freshwater science, agricultural technology, education technology, personalized medicine, telemedicine, nanosatellites and smart materials. As these trends evolve into the industries of the future, not only will existing businesses have new opportunities, new businesses and business models will be created.

WHAT IS YOUR ONE PIE-IN-THE-SKY WISH FOR 2018 FROM THE STANDPOINT OF ECONOMIC DEVELOPMENT THAT FOSTERS BUSINESS GROWTH? Fortunately, I don’t have to wish for something that will greatly enhance business growth in the coming year, because we already have it. Arizona has worked to create one of the most business-friendly climates not just in the United States, but anywhere in the world, and we offer an incredible value proposition to businesses. Since taking office, Governor Ducey has demonstrated a steadfast commitment to making Arizona the best state for business. That commitment can be seen in policies that keep government out of the way of business growth and innovation. Many outdated or unnecessary regulations have been removed thanks to the Regulation Rollback initiative, and Arizona is

INBUSINESSPHX.COM

embracing innovation through legislation and executive action that supports the sharing economy and autonomous vehicles. In addition, Arizona has kept our tax structure competitive and our operating costs remain low, which are key factors in helping businesses scale rapidly here. And, of course, as businesses scale, the No. 1 thing they need to support that growth is talent. Arizona offers an abundant talent pool, fed by our world-class public and private universities and community colleges, with the skills ready to meet the needs of employers. When industry-leading companies like Intel, Orbital ATK, ADP, Raytheon and others announce thousands of new jobs in Arizona, it clearly demonstrates the quality and availability of

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RISKS & REWARDS

ENTERPRISE SUCCESS The study “Best in Class: How Enterprises Succeed with Language Learning Programs,” from a survey conducted by Forbes Insights in partnership with Rosetta Stone, shows that two-thirds of businesses reported less than 50 percent of their employees have professional proficiency in more than one language, and 36 percent of businesses have fewer than one in 10 multilingual employees. However, 64 percent of the companies surveyed felt reasonably confident that they are able to align language learning programs to their company’s strategic direction and provide meaningful learning opportunities for their employees. bit.ly/forbeslanguage-learning

Chris Brotherson is senior director of enterprise sales with Rosetta Stone. The company, founded in 1992, is dedicated to changing people’s lives through the power of language and literacy education. Its language division uses cloud-based solutions to help all types of learners read, write and speak more than 30 languages. www.rosettastone.com/ business

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INBUSINESSPHX.COM

Language Training Benefits Business Top three things to keep in mind in evaluating language training for one’s business by Chris Brotherson

As more and more companies are expanding into a global economy, it has become evident that having a multilingual workforce is a critical success factor. Think about it: What if a company’s employees couldn’t communicate with each other or key external contacts such as customers, consultants or vendors? It would be highly likely that this could significantly damage earning potential. While the issue at hand is clear — language barriers can affect businesses and their bottom line — many companies still have not realized just how much language proficiency can influence multiple sectors within a business, ultimately driving sales. Rosetta Stone recently partnered with Forbes Insights to survey executives around the globe to find out if companies are training their employees to speak and work in more languages and what impact that training has on both the employees and the company. While the survey findings revealed that companies do understand the necessity of language learning, it also underscored where there is room for improvement in incorporating language learning into corporate culture. Based on the survey, we found: Language learning has a tangible positive impact on employees. The managers of employees who participate in language learning perceive them to have more confidence, improved performance and increased engagement in work. Language learning worldwide will move from in-person training to digital platforms. Digital learning platforms are poised for growth as companies expect to see their use increase, taking share away from what is currently the most popular method: traditional in-person training. Today’s workforce has changed, with many employers offering flexible working environments; engaging in learning and development programs such as language learning needs to be flexible as well. Many digital platforms allow teams to learn on-the-go from their mobile devices or on their PCs at home or on the job. Digitalization also allows employers to provide a standardized learning platform that employees can access no matter where they are in the world. Successful learning aligns with corporate mission. Measuring language learning is key to proving alignment with a company’s strategy. Companies that build language training into employee development plans and track KPIs are twice as likely to successfully align language learning goals with their corporate mission.

There is room for growth. The vast majority of companies surveyed recognize the importance of having multilingual employees across multiple functions and business lines, with 92 percent of executives indicating the entire company realizes the benefits of language training. Yet most companies have invested in language learning for fewer than a quarter of their employees.

LANGUAGE LEARNING AND CORPORATE CULTURE

Business leaders need to take note of the impact a language skills gap can have on their business, but also understand the benefits of incorporating language learning into their corporate culture and the positive effects it has on their employees. Today, companies’ language learning needs are incredibly diverse — more diverse than ever before. From a language perspective, these needs almost always involve English, but for companies that have expanded their operations and customer reach globally over the last decade, language needs often include a mixture of several languages. For example, in 2009, Marriott International, a leading global lodging company, set out to bridge the language gap by rolling out several new tools to ensure nothing would be lost in translation. To achieve this unified goal, Marriott enlisted help from Rosetta Stone’s digital global language learning program, mirroring the motto of J.W. Marriott Jr., executive chairman and chairman of the board of Marriott International, “If you take care of the associate, the associate will take care of the guest and the guest will come back.” Eight years later, Marriott’s employees continue to be engaged in language learning. As a global company, many different languages are spoken throughout Marriott International. With its exceptionally large footprint in China, candidates have even approached Marriott for job opportunities after hearing it provides its employees the tools needed to learn English. Marriott has found great value in offering its employees language training as, for the company, it has improved efficiency, supported assimilation efforts, contributed to its focus on culture competence and promoted both professional and personal growth. Truth be told, long gone are the days where a businessperson could say, “I need only 'this' or 'that' language for my company,” because now, there is truly no way to know where expansion opportunities may lead. Due to this, it is

Nearly 60 percent of managers cited improved customer feedback as the area most impacted by employees participating in language learning, in the Forbes Insights study “Best in Class: How Enterprises Succeed with Language Learning Programs.” Performance improvement and more confidence also ranked high at 46 percent and 51 percent, respectively. bit.ly/employee-lang-prof


BETTERING YOUR BUSINESS imperative to have access to employees with experience in a variety of languages, and to a language learning solution that’s flexible enough to change alongside business priorities. As client spaces are growing and diversifying rather rapidly, the needs of companies are global in nature, which is why a learning program that offers a consistent experience in evaluation scale, no matter where their employees are, is key. However, it is important to remember that language training is not a one-size-fits-all solution because no two employees are exactly alike. In fact, the need for language training varies based on an array of circumstances, from what department the employees are in to what positions they occupy, as well as their current proficiency level; not everyone needs the same kind of context and not everyone has the same urgency in terms of their needs to learn. Often, companies struggle to accommodate all this variety as they aim to offer targeted solutions that make employees feel like they’re getting exactly the training they need, when they need it. Here are three things businesses should consider to ensure they’re offering their employees just that: The best support for the diverse language-learning needs of the workforce — Look for a comprehensive solution that breaks down barriers, sparks confidence and transforms customer, partner and employee communications. An effective program should offer multiple learning paths — specifically, paths that are tailored to learners’ needs. Self-paced programs offering different learning environments are a bonus, as they arm employees with the option to accelerate their language learning either in groups or in one-on-one settings, whatever works most effectively for them. Tailored learning paths and target instruction based on employee proficiency level — Most businesses need a language training program that supports all proficiency levels from beginner through advanced. Rosetta Stone’s business language learning solution, Catalyst, for instance, helps fulfill language training needs that match a wide variety of use cases; from workforce development where it’s critical to have a beginner level solution, all the way up to specialized language for industries like healthcare, medicine or hospitality. Catalyst also measures language goals and baseline assessments, so it’s determined what skill level the employee is already at prior to starting the program, where they need to be by the end of it, and the best route to get there. It’s crucial to have a solution that adapts alongside the learner as they progress, so they are always advancing and evolving their abilities, not remaining stagnant. Ability to quickly assess and measure progress — An effective language learning solution must feature testing and reporting, enabling program managers to assess employee proficiency at the start of the program and then measure progress along the way. There should also be the option for reporting on key metrics, such as usage, to ensure the company is getting the highest possible return on investment. Additionally, the proliferation and effectiveness of digital learning is prompting organizations to rethink traditional learning approaches and adopt technology-based models for training and development in a number of areas. It is clear to see how providing employees with language training can help global enterprises compete, and that the resources are out there. It all starts with expanding employees’ skill set from home base.

Rise and Grind Daymond John knows what it means to push yourself hard — and he also knows how spectacularly a killer work ethic can pay off. As a young man, he founded a modest line of clothing on a $40 budget by hand-sewing hats between his shifts at Red Lobster. Today, his brand FUBU has more than $6 billion in sales. Convenient though it might be to believe there are shortcuts to the top, one must rise and grind every day. In the anticipated follow-up to the bestselling The Power of Broke, Daymond takes an up-close look at the hard-charging routines and winning secrets of individuals who have risen to the challenges in their lives and grinded their way to the very tops of their fields. Rise and Grind: Outperform, Outwork, and Outhustle Your Way to a More Successful and Rewarding Life Daymond John and Daniel Paisner

320 pages

Currency

$27

Available: 1/23/2018

Big Potential In a world that thrives on competition and individual achievement, we are measuring and pursuing potential all wrong. By pursuing success in isolation — pushing others away as we push ourselves too hard — we are not just limiting our potential, we are becoming more stressed and disconnected than ever. In his highly anticipated follow-up to The Happiness Advantage, Achor reveals a better approach. Drawing on his work in 50 countries, he shows that success and happiness are not competitive sports. Rather, they depend almost entirely on how well we connect with, relate to, and learn from each other. So, when we help others become better, we reach new levels of potential as well. Big Potential: How Transforming the Pursuit of Success Raises Our Achievement, Happiness, and Well-Being Shawn Achor Currency

240 pages Available: 1/30/2018

$28

Crushing It! Four-time New York Times bestselling author Gary Vaynerchuk offers new lessons and inspiration drawn from the experiences of dozens of influencers and entrepreneurs who rejected the predictable corporate path in favor of pursuing their dreams by building thriving businesses and extraordinary personal brands. In his 2009 international bestseller Crush It, Vaynerchuk insisted that a vibrant personal brand was crucial to entrepreneurial success. In Crushing It!, Vaynerchuk explains why that’s even more true today. The secret to their success (and Vaynerchuk’s) has everything to do with their understanding of the social media platforms, and their willingness to do whatever it took to make these tools work to their utmost potential. Crushing It!: How Great Entrepreneurs Build Their Business and Influence – and How You Can, Too Gary Vaynerchuk Harper Business

288 pages Available: 1/30/2018

$29.99

Forbes Insights study “Best in Class: How Enterprises Succeed with Language Learning Programs” http://bit.ly/forbes-language-learning Rosetta Stone rosettastone.com/business

In the Forbes Insights study, 92 percent of executives indicated the entire company realizes the benefits of language training, though businesses in the customer service, travel and hospitality sectors are more likely to report this than other industries.

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MINDING THEIR BUSINESS

Don Fechter: Innovating Solutions through Cambridge Benefit Solutions Local company with national presence celebrates two decades of excellence by Kari Pieratt

SNAPSHOT: CAMBRIDGE BENEFIT SOLUTIONS • Don Fechter founded Cambridge Benefit Solutions 20 years ago, after working in the healthcare industry for two national health insurance carriers. • CBS develops comprehensive, uncommon employee benefit strategies that allow employers to better sustain the rising cost of health insurance. • Out of more than 2,200 agencies, CBS has been recognized as a top benefits consultant for more than nine years by the largest general agency in the Southwest. • In 2017, CBS was recognized as a Copper Award recipient by the Health Arizona Worksites Program.

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Don Fechter, president of Cambridge Benefit Solutions, started the company in 1998 with a drive and determination to support businesses with meaningful, valuable and relevant benefit offerings. It’s been Fechter’s comprehensive support of business owners, helping them make informed decisions for affordable, long-term, sustainable healthcare offerings, that has propelled his company to be a top benefit consultant firm over the past two decades. His expertise in this field started in the early 1990s, working with two national health insurance carriers. There he learned the mechanics of the healthcare industry and its delivery system. He took his experience in serving the end-consumer and finding strategic solutions, and, in the late 1990s, applied it to his work as an independent consultant. Doing right by the customer, he believed, meant focusing on solving problems within the hour or within the business day. He earned his clients’ trust by being sincere and reliable, and going the extra distance to offer strategies to curb the tide of continually rising healthcare costs. “To remain innovative and competitive in a constantly changing and chaotic healthcare marketplace takes a strong team to take care of customer requests and bring long-term solutions to business clients,” Fechter says. Founding CBS, he developed the “8 Pillars of Business Excellence”: personal integrity, initiative and drive for results, strategic thinking, customer focus, teamwork and collaboration, conceptual thinking, people first, planning/organizing and follow-up. He built his team with people who share those ideals and match his dedication. Over the company’s two decades in business, CBS has partnered with two general healthcare agencies in Phoenix. This partnership allows CBS to design unique health plan offers. Knowing that simply offering the “same-old, sameold” approach will yield similarly predictable results, Fechter fosters an environment that encourages his team offer uncommon strategies for employers. “Wise healthcare consumerism is still a developing concept,” Fechter says. Observing that most consumers do incredibly well when shopping, comparing and understanding their purchases for technology devices, TVs, homes and cars, he notes, “When it comes to using healthcare wisely, however, the vast majority of consumers get stuck. Typically, they do not know where to turn, and are challenged by how to seek affordable, quality healthcare services.” This was a need Fechter developed CBS to address, and trained his employees to teach clients’ employees how to be better healthcare consumers. CBS offers educational videos, personal consultations, resource materials and access to personal health advocacy services.

According to the Centers for Disease Control, medical costs are reduced by $3.27 for every dollar spent on workplace wellness programs.

The CBS team also helps employers become wise healthcare consumers for their workforce. Options include traditional health plans as well as alternative offers such as Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs) and customized tailored networks. “In particular,” Fechter notes, “CBS has been successful with industry-specific health plan association groups that allow small and midsize companies to band together to purchase group health insurance in a self-funded program.” For midsized and large employers, CBS can also develop long-term strategies with level-funded or self-funded programs. “What continues to be important to me is helping employers looking to differentiate themselves in the marketplace,” he shares. To that end, CBS can help implement wellness programs with premium discounts and rewards, personal health advocacy programs, and tele-doc services at zero cost.  “To impact the marketplace, consumers and organizations need to become wise healthcare consumers, looking beyond traditional approaches to find better healthcare options that are affordable and sustainable,” Fechter says. He believes it will take continued collaboration between employers, benefit consultants and other business experts to develop new solutions for employee benefit programs. And he believes CBS plays a vital role in its commitment to finding solutions and strategies that are beneficial for everyone in the healthcare delivery system. “Individuals and families are more equipped to get the quality care they need when employers offer quality employee benefit programs,” Fechter points out, and emphasizes, “In today’s healthcare climate, maintaining the status quo is no longer a viable solution.” Under his direction, Cambridge Benefit Solutions has become an industry leader in employee benefit program consulting and continues to innovate beyond traditional benefit planning with uncommon strategies to produce real, long-term outcomes.  Cambridge Benefit Solutions cbsarizona.com


BY MIKE HUNTER

JANUARY 2018

Tempe Chamber of Commerce

Women in Business Leadership Speaker Series – ‘Together We Grow’ Fri., Jan. 26 | 8:00a – 9:30a The Tempe Chamber’s Women in Business Council presents its annual four-part Leadership

Greater Phoenix Chamber of Commerce

‘Economic Momentum, Public Policy, and Small Business Opportunity’ Thurs., Jan. 18 | 7:30a – 9:00a On January 18, the Greater Phoenix Chamber of Commerce will launch the Small Business Master Series. This education series is designed to foster smallbusiness growth, offering attendees the opportunity to connect with other business leaders while hearing from top Valley experts on topics geared specifically to small and mid-sized businesses. Formatted as a bimonthly, hour-long program in recognition of how valuable and limited time is for small-business leaders, it will provide attendees with tips and techniques to innovate and expand in a rapidly-changing economy. To kick off the series, Jim Rounds, president of Rounds Consulting Group, will present “Economic Momentum, Public Policy, and Small Business Opportunity,” sharing his insight into the economic momentum in Arizona as we head into the new year as well as updates on policy affecting small business in 2018. Rounds Consulting Group specializes in economic development and tax policy research; data collection and analysis; fiscal planning, including revenue forecasting and budget development; strategic planning and marketing; impact and market studies; and litigation support. Rounds regularly provides advice to policymakers at the State Capitol, mayors throughout the state as well as city council members, county board members, and other public and private sector leaders in the community.

—Mike Hunter

Speaker Series designed to give real-world perspectives from experienced public and private sector leaders. Four powerful expert speakers will inspire, educate and motivate participants to grow and succeed in their professional careers.

SAVE THE DATE

Dr. Karen Jacobson kicks off

Upcoming and notable

the series in January, presenting “Together We Communicate – The Secrets of Modern Day Super Achievers” to enable listeners to become better communicators and unlock their performance in the workplace. Dr. Jacobson integrates her diverse background that includes Israeli military commander and champion ballroom dancer into her personal brand as a keynote speaker and has shared her high-performance message on and off the stage with more than 2,000 clients — from health professionals to CEOs, best-selling authors and national radio hosts. She is the author of multiple books, including Change Your World and the international bestseller Ready, Aim, Inspire! The Friday morning series continues in February:

Women in Business Leadership Speaker Series Jan.

Fri., Feb. 2

2

In this second session of a four-part series, Olenka Cullinan presents “Together We Achieve -Earning your Potential.” tempechamber.org

On February 2nd, Olenka Cullinan will present “Build Your “Success Backbone.” Cullinan, who arrived in the United States with $450 in her pocket, has lived through about every “I-can-never-be-successful-because” excuse a human can make. The founder of Rising Tycoons, a success program for future leaders, she teaches youth and adult influencers to stop preparing for the perfect moment and start doing instead. On February 9th, Mindy Weinstein will present “Integrating Cause Marketing into Your Business.” The founder and CEO of Market MindShift as well as a digital marketing strategist, national speaker and published author, Weinstein has taught SEO and social media to companies of all sizes — from small businesses to major brands. Her digital marketing strategies have been used to raise online visibility of both personal and business brands. And closing the series on February 16th, Deborah Dubree will present “Synergistic Leadership: Keys to Catapulting Your Growth & Ensuring Your

A GEM Talk presented by the Small Business Council Jan.

8

Thurs., Feb. 8

Each “GEM Talk” (Gilbert, Entrepreneurial, Motivational) features an interactive session with a successful and motivational entrepreneur. gilbertaz.com

Success.” With only a high school diploma, Dubree grew from answering phones as a receptionist to become the owner and CEO of a $20-million

Members: $10; non-members: $25

corporation. She learned how to go beyond the expected and succeed. Dubree

National Bank of Arizona

has been featured on Inside Edge, Money Radio and more.

6601 N. 24th St., Phoenix

—Mike Hunter

Members: $25; non-members: $35

phoenixchamber.com

MarinaLink by State Farm 400 E. Rio Salado Pkwy., Tempe tempechamber.org

JANUARY 2018 S M T W T F S 1 2 3 4 5 6 7

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14 15 16 17 18 19 20 JANUARY 2018 NOTABLE DATES 21 22 23 24 25 26 27 Mon., Jan. 1 — New Year's Day 28 29 30 31

Mon., Jan. 15 — Martin Luther King Jr. Day

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JANUARY 2018 Tues., Jan. 9

7:30a – 9:00a

Good Government Buzz Session with Gilbert Town Leaders Gilbert Chamber of Commerce An event of SRP’s Good Government series, this roundtable meeting will bring members of Gilbert’s Town Council and staff together with the business community for an informative and fast-paced discussion regarding important business issues. This meet-and-greet event is an opportunity to ask questions and provide feedback that will contribute to a vibrant business community. Members: free, up to 2 seats each, $10 each additional guest; non-members: $50 Gilbert Town Hall – Room 300 50 E. Civic Center Dr., Gilbert gilbertaz.com Wed., Jan. 10, 17, 24 & 31

Sat., Jan. 13

7:00a – 9:00a

9:00a – 12:00p

Wed., Jan. 17

Business Over Breakfast

Publishing Alternatives Workshop

Glendale Chamber of Commerce

Mesa Chamber of Commerce

This weekly event is a great opportunity for members to come together over breakfast, make new connections, exchange leads and referrals and build relationships to help grow business. Hot breakfast is included.

A step-by-step workshop to help attendees identify their options and a road map to help them pursue their goals in today’s publishing world.

Members: $20; future members: $60

GBS Books

Old Country Buffet

11226 N. 23rd Ave., Phoenix

17125 N. 79th Ave., Glendale

arizona.scbwi.org

Chamber Connections

Members: $35; non-members: $45

Gilbert Chamber of Commerce This informal gathering is a fun way to share conversation with other professionals while learning more about businesses and services within the community. Price includes lunch buffet and tax. $10; pay at door Main Event Entertainment 1735 S. San Tan Village Pkwy., Gilbert

glendaleazchamber.org

gilbertaz.com/

9

10 Tues., Jan. 9

11:30a – 1:00p

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16

Tues., Jan. 16

Noon – 1:15p

7:30a – 8:30a

17 Tues., Jan. 16

Noon – 1:30p

Phoenix Luncheon

Business Before Hours

Women in Leadership Luncheon

Arizona Association for Economic Development

Tempe Chamber of Commerce

Chandler Chamber of Commerce

This monthly networking mixer provides an informal atmosphere for businesspeople to meet and network with fellow members of the business community. Participants will each have the opportunity to showcase themselves and their businesses with a 30-second commercial. A complimentary light breakfast will be provided.

Women in Leadership meets on a monthly basis to enhance the development of women on their professional journey.

Learn what is on the minds of legislators and how to better interact for legislative success. What economic development policies does the Arizona Association for Economic Development and like-minded organizations support? Strengthen skillsets to be a successful advocate for economic development. Members: $45; non-members: $65

Members: free; non-members: $10

Phoenix Country Club

Southwest College of Naturopathic Medicine & Health Sciences

2901 N. 7th St., Phoenix

2152 E. Broadway Rd., Tempe

aaed.com

tempechamber.org Tues., Jan. 16

5:30p – 7:30p

Taste of Mesa Mesa Chamber of Commerce Taste of Mesa is a monthly networking program sponsored by and hosted at area Chamber member establishments. Members: $15; non-members: $25 Jake’s Unlimited 1830 E. Baseline Rd., Mesa mesachamber.org

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For more events, visit “Business Events” at www.inbusinessphx.com

Please confirm, as dates and times are subject to change.

Members: $25; non-members: $35 SoHo 63 63 E. Boston, Chandler chandlerchamber.com


Tues., Jan 23

11:00a – 1:00p

Business Resource & Networking Luncheon North Phoenix Chamber of Commerce Each attendee is allowed generous time to introduce themselves and present information pertinent to their business. Members: $20; non-members: $25; at the door: $30 cash only Valle Luna

16048 Cave Creek Rd., Phoenix

northphoenixchamber.com

Thurs., Jan. 18

Tues., Jan 23

7:30a – 9:00a

7:30a – 9:00a

Expert HR Series – The Top 10 Employee Management Issues for HR Managers and Supervisors

Hot Topics & Breakfast Tempe Chamber of Commerce

Follow a step-by-step process with the In Business Brand®

Scottsdale Area Chamber of Commerce

Habitude Warrior International presents award-winning speaker and best-selling author Erik Swanson, who will host his “Business Building Habits and Training Session.”

This is part of the Mountain States Employers Council series focused on Human Resources. This session is designed to provide highlights of common pitfalls for HR managers and supervisors, including topics such as good communication, performance management, when (and when not) to get involved, managing to be popular, and legal compliance, including an overview of discrimination and wage and hour laws.

Members: $25; non-members: $35 Halle Heart Children’s Museum

$20 per seminar

2929 S. 48th St., Tempe

1. TARGETED PRINT

Mountain States Employers Council

tempechamber.org

7975 N. Hayden Rd., Scottsdale scottsdalechamber.com

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23 Thurs., Jan. 18

11:00a – 1:30p

24 Wed., Jan 24

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2. ONLINE & DIGITAL

5:30p – 7:00p

Strategic Business Event

Business After Hours

eWomenNetwork Phoenix/Scottsdale

Tempe Chamber of Commerce

Networking.

Members of the business community come together to enjoy a night of food, drinks, conversation and network development during this casual mixer.

Member: $50; non-members: $75 The Mark

6803 E. Main St., Scottsdale

ewomennetwork.com/chapters/phoenix-scottsdale-511 Thurs., Jan. 18

5:30p – 7:30p

Mix and Mingle

Location TBD tempechamber.org

North Phoenix Chamber of Commerce

Fri., Jan 26

Network in a high-energy setting.

Meet Your Neighbors for Lunch

Free Stone Creek Golf Club

4435 E. Paradise Village Pkwy. S., Phoenix

northphoenixchamber.com Thurs., Jan. 18

5:00p – 7:00p

11:30a – 1:00p

Scottsdale Chamber of Commerce Meet Your Neighbors is a monthly event designed for Chamber members and non-members to network over lunch.

Arizona Technology Council and American Express

Members: $15 if prepaid; non-members: $20 if prepaid; at the door: $20

Food and drinks are included in this special networking event.

Scottsdale Chamber of Commerce

Members: free; non-members: $25

7018 E. Main St., Scottsdale

Sol Cocina Mexican Restaurant

scottsdalechamber.com

VIP Tech Mixer

15323 N. Scottsdale Rd., Scottsdale

3. SOCIAL MEDIA & EMAIL

Members: free; non-members: $10

Want to meet for lunch? We will bring lunch to you to talk about what the In Business Brand® can do for you. Learn more at

aztechcouncil.org

If your event is directed to helping build business in Metro Phoenix, please send us information to include it in the In Business Magazine events calendar. Full calendar online. events@inbusinessmag.com

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marketing.inbusinessphx.com


OUR SUBJECT IN-DEPTH

Putting the 'Why' in Personal Finance Alignment not only helps organizations become more successful, it helps employees become more successful as well by George Grombacher

VALUE OF ‘WHY’ If an employee benefit is valuable, employees want it. For example, “take-up” rates for employer-offered life insurance are 98 percent across the board. In this example, employees view life insurance to be of value. There also exists an opportunity for employers to offer their employees alignment through understanding their “why”; possibly the greatest offering they can make.

George Grombacher is a consultant, podcaster, writer and speaker. He’s a co-founder of the “Figure it Out podcast” and host of the “Money Savage” podcast. His first book, The Farmer’s Rules for Your Financial Harvest, will be released in early 2018. He helps companies design educational strategies for increasing employee participation in retirement plans. GeorgeGrombacher.com

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Alignment is a simple idea that can add 5 percent to a business’s top line and will have implications not before considered. People seek a purpose-driven life. A successful organization can help provide that through aligning the organization’s purpose from the CEO to every employee. An important aspect of alignment involves helping employees recognize the impact they have. If an organization could help its employees more fully realize the impact they have through their work, it could help the organization more fully align while, at the same time, helping the employee achieve personal alignment — leading to greater fulfillment and contentment in their lives. It would have a dramatic and positive impact on their financial situation because a fulfilled and contented person is less likely to overconsume material things. Too big a stretch? Well, why not give it a shot? The current state of the American worker shows that almost half of employees are not engaged in their work. A lack of a “why” — or purpose — is partly responsible. Bank statements show us that almost half of Americans couldn’t come up with $400 in case of an emergency. A study by Bank of America Merrill Lynch showed that engaged employees are more successful financially; specifically, that they save more money. On the other side of that coin, there exists a significant amount of research showing that employees with poor financial situations underperform their counterparts who aren’t in poor financial situations. The findings point to financial stress as the primary reason. Anecdotal evidence indicates there is a correlation between lack of engagement and a poor financial situation. OK, then, how does an organization address this? It starts at the top, flows down and then back up. Every organization has a purpose or a reason it exists. An organization needs to be clear on what that purpose or reason is. What void would appear if the organization was no longer in existence? That’s the organization’s “why.” Next, it’s important to engage the employees. Do they know the “why” of the organization? This doesn’t need to be a complicated process. It requires a simple question: “Do you understand what we’re trying to accomplish?”

 Finance and Workforce: A Three-Part Series

Putting the 'Why' in Personal Finance (January 2018) Addressing the Absence of Community in Personal Finance (February 2018) Money, the Final ‘Off Limits’ Topic (March 2018) To reference published segments, please access the archived “Features” articles on the In Business Magazine website,

From there, the organization needs to set up a committee comprised of employees from all departments, tenures, backgrounds, levels and locations to integrate the “why” into everything the company does; reinforce the message; and consistently remind everyone connected to the organization of the “why.” There are many titles for such a committee, but it is most commonly known as a values committee. It should meet on a monthly basis. Aligned organizations commonly promote their values not only externally but internally as well. There are many technologies available for intercompany communication, and these technologies should be utilized for branding the organization’s values and reinforcing behaviors. Engraining the “why” into an organization’s community will help strengthen its effectiveness. The goal is complete alignment from the CEO down to every employee. It’s been demonstrated time and again through publications such as Firms of Endearment that purposedriven organizations dramatically outperform other S&P 500 organizations that are not considered purpose-driven. All too often, organizations and people address the symptoms, not the true problem. An organization that is aligned can’t help but be successful. An employee who is personally aligned is someone fulfilled by his or her work and can’t help but be more financially successful. This isn’t a quick turnaround story. This is the beginning of converting some of the disengaged employees to engaged employees. In so doing, businesses will likely find those same employees aren’t stuck without $400 cash in the event of an emergency — because they’re in a stronger financial position. And for the employer, there’s that 5 percent increase to the top line.

Aligned employees find the act of work to be both meaningful as well as purposeful. Work can become the manifestation of their passions. Research has shown these employees have a higher level of work and life satisfaction than their counterparts. They demonstrate loyalty and an ability to collaborate, which leads to greater overall individual success. http://bit.ly/payroll-driven-people


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WE VALUE WHAT WE OWN

2018 Volvo XC90 Shaping Up for Busines s in

THE YEAR AHEAD

2018? What can expect in business the coming year?

JANUARY 2018

Training Advances

• INBUSINESSPHX.COM

Multilingu Advantag al e THIS ISSUE

Global Chamber Alliance of Arizona Nonprofits

Trending

Changes

in Office Design

Finance Workforce& – 3-part series

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2018 VOLVO XC90 MSRP: $46,900 City: 22 mpg Hwy: 25 mpg 0-60 MPH: 5.3 sec. Transmission: 8-speed automatic

runs at 90 degrees to its shape and has a glossy clear coat for a contemporary look that is complemented by an aluminum sheet with a diagonal, brushed finish that creates texture with real luster and shine through the cabin. When the sun shines, the finish glitters. Up to seven people travel comfortably and enjoy an excellent view in individual, ergonomically designed seats. All seats adjust easily to suit personal preferences, and in the third row, two passengers ride comfortably with ample legroom. The premium Sound by Bowers & Wilkins brings exceptional clarity and realism to the music, wherever the passenger is seated. Seamlessly integrated into the cabin architecture of this Volvo, the 12-channel amplifier, an astonishing 1400-watt output and 19 separate high-end speakers — including a tweeter-on-top center speaker that minimizes acoustic reflection from the windshield — will surround passengers with a pristine sound that feels more spacious and true to life than ever before in a Volvo. —Mike Hunter Volvo volvocars.com

Date & Time: Business Calendars for 2018 Schedule and time may be the two most precious assets a businessperson has. While apps are great, here are our picks for stylish accessories that let us really take time into our hands. —RaeAnne Marsh

Tiffany 1837 Perpetual Calendar This calendar will

Neiman Marcus 2018 Calendar Paperweight

last a lifetime. The

There’s an art to keeping

Day-Timer 2-Page-Per-Day Original Western Coach Leather Planner Set Desk Size

desktop sterling

piled-up paperwork under

Plenty of space to

silver frame, inscribed

control — and this helpful

capture notes, to-dos,

with the year Tiffany

desk décor manages reams

phone messages and

was founded, will

beautifully. Nickel-plated

more. Leather cover in

look great in the executive office or

calendar paperweight. $32 neimanmarcus.com

burgundy, black or dark

reception. Calendar month inserts available

JAN. 20 1 8

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tan can be personalized (for an additional

forever, accommodating any day/month

charge). Includes pen and an accessory

combination. $360 tiffany.com

pack. $151 daytimer.com

There can be few men on the planet who have saved as many lives as Volvo engineer Nils Bohlin. He introduced three-point seatbelts into the series production PV544. Since then, it’s estimated that more than one million lives have been saved as a result of Volvo Cars waiving its patent rights so everybody could benefit.

Photos courtesy of Volvo (top and far left); Tiffany, Neiman Marcus and Day-Timer (bottom, l to r)

MAGAZINE

JAN. 2018

IN BUSINESS

Supply Chain across the U.S.-Mexico Border

The XC90 from Volvo is considered to be a real win for the car company that, over the last few years, has lost some of its famous market share it held through accolades for years on safety —and reliability. The car manufacturer has been innovating and is now back and “safer” than ever with its multiple innovations for the future of automobile safety. The XC90 is the SUV that everyone is taking about because of its adaptive airbag inflation, steering headlamps, automatic breaking, Blind Spot Information System™, City Safety™ collision avoidance technology and so much more — all standard — demonstrating that Volvo truly is the safest car brand on the road. This utility vehicle is just that — a utility — before anything else. The performance begins with the 250-horsepower, 258 lb. ft. of torque, Direct-Injected Turbocharged Engine, and eight-speed Geartronic™ automatic with Start/Stop & Adaptive Shift technologies. Using low friction engine technology, innovative engine management system, common rail direct fuel injection and advanced turbo technology, this engine maximizes power and efficiency. For everyday drivability, the turbo provides particularly good response at low to medium engine speeds. The wood panel trim is cut from birch trees grown in Sweden, Norway and Finland, with a unique flame-shaped grain pattern created by natural conditions. Each panel’s grain


MEALS THAT MATTER

Original Chop Shop: Focus on Fresh

greens — tossed with a yogurt sauce and red wine vinaigrette — with slices of turkey between two slices of crusty 12-grain ciabatta. The sandwich-sliced turkey’s fresh, buttery taste is attributable to the minimal use of sodium. Additional signature menu items include the Acai Bowl, which is also a super-fruit, topped with shredded coconut, bananas, strawberries and agave nectar; the Danish salad, which includes Danish bleu cheese, smoked almonds and red wine vinaigrette; the Cheat Day Wrap, served with bacon, egg, avocado and ham or turkey; the Power Green and the Daily Detox fresh juices; and the Muscle Malt and the Jacked Up PB + J protein shakes. Serving breakfast, lunch and dinner, Original Chop Shop suits the time constraints of a workday lunch especially well, with its order-at-the-counter style of self-serve (or, even faster, online ordering) combined with the best of friendly service when the order is brought to the patron’s table. —RaeAnne Marsh

GRINDER Ham, turkey, soppresata, provolone, mayo, tomato, house greens, onion, banana pepper, red wine vinaigrette.

celebration every time GE makes that next big deal. It is also the best view of New York City. Here are some of our own great “sights” for that meaningful meeting. —Mike Hunter Fifteen floors up above the casino on the

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MAGAZINE

Shaping Up for Busines s in

THE YEAR AHEAD

2018? What can expect in business the coming year?

JANUARY 2018

Training Advances

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a sense of success. The Rainbow Room at 30 Rockefeller Center in Manhattan is home to

Supply Chain across the U.S.-Mexico Border

House-trimmed beef, roasted broccoli, cauliflower, onion, carrots, mushrooms, green onion, sesame seeds, brown rice.

Multiple locations around the Valley

From the beginning of time, man has looked to climb higher and higher heights to show off

Orange Sky – Talking Stick Casino

SPICY KOREAN STEAK PROTEIN BOWL

Original Chop Shop

Feast for the Eyes: Framing that Meaningful Business Dinner

IN BUSINESS

Photos courtesy of Original Chop Shop (top and far right); Pointe Hilton Tapatio Cliffs Resort (bottom)

After the excesses of the holidays, it’s good to find a place focused on healthy eating. The Original Chop Shop is built on a simple concept, executed simply, and summed up succinctly in the restaurant’s tagline, “Just Feel Good Food.” Fresh, whole ingredients go into the scratch-made menu, from “between bread” (sandwiches) to protein shakes to the name-sake “chops” (salads). “We bring in a ton of produce,” says co-owner Kyle Frederick. Now with five locations around the Valley (with a sixth on the verge of opening this month), the Original Chop Shop offers a different experience at each — from the Old West décor at the Original Chop Shop’s original Old Town Scottsdale store to the more contemporary openness of the latest store that opened recently in Paradise Valley. Protein bowls are a core focus of the menu, providing guests with three key essentials: greens, grains and proteins. The most popular is the Teriyaki Chicken Bowl, with a pleasantly light touch on the teriyaki, which can be served with superfood forbidden rice, brown rice or sweet potato hash. The Moroccan Turkey sandwich stuffs a flavorful mix of avocado, roasted red pepper, red grapes, cucumber and house

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Expanding from five to seven locations in the Phoenix area this year, popular local restaurant Original Chop Shop also plans to take the concept national, starting with its entry into Dallas mid-year.

39 20JAN.1 8 INBUSINESSPHX.COM


JANUARY 2018

In Business Magazine is pleased to offer the MarketPlace for our readers. This section is for

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GLOBAL CHAMBER

®

Global Chamber® Events

WINTER 2018

phoenix.globalchamber.org/events

January 2 and throughout 2018 Enlightened Leaders Mentoring and Peer-to-Peer Advisory January 16 Tips on Cross Cultural Communication 8:00 a.m. SkySong in Scottsdale

SPOTLIGHT EVENT January 23 International State of the Metro 5:30 p.m. DIRTT in Phoenix phoenix.globalchamber.org/events

January 30 Setting Up Your Business Abroad 8:00 a.m. SkySong in Scottsdale

January 30 Global Chamber Phoenix Advisory Board 3:30 p.m. SkySong in Scottsdale

Inside this Section

2 3  4  5  6  7  8 

Recent Member Success Round-the-World

Upcoming Business Growth Events Staying Ahead of NAFTA Trade Law Changes

12 Habits of Warm Connectors Key Business Insights for Investing in Africa

Tips for Cross-Cultural Communication Trade Missions to New Markets Worldwide

Become an Enlightened Leader by Doug Bruhnke, CEO and Founder of Global Chamber®

Enlightenment: Having or showing a rational, modern and well-informed outlook. The world is changing rapidly, so being enlightened to the present and future is essential. Eighty-five percent of new business opportunities in the next five years will be outside the U.S. The business world is full of people rich in culture and diversity. Does your business team have the diversity of the markets you intend to serve? Almost certainly NOT. Women make up half the population, yet they account for less than 10 percent of the leaders on U.S. company boards, and 7 percent of technology industry executives in the Bay Area. These facts are despite the data that shows companies with more gender balance are more successful. What’s holding companies back? History. Momentum. Fear. Fear by women of retribution for speaking out against unfairness and abuse. Fear by men that by opening the door to women in the workplace, they will be left out. Now, in the past couple of months, a claim by one woman against a movie studio producer for abusing his position of power has turned into two claims, and three and many more — and dozens of executives have been fired for abusing their positions of power against women. The business reality is, the world is changing rapidly, and women are gaining more and more powerful positions. And if your business team doesn’t reflect the markets in which you plan to grow five years from now, you’re at a disadvantage to companies who are. And so the time for action is NOW. Twenty years ago, I fought and eventually was able to shift an OL (office lady-secretary/admin) in my company’s Osaka office to phone sales. The office leader had been arguing for many months that “no one at Toyota will ever buy from a woman.” Wrong! Once she started, she became our best salesperson!

Today, Enlightened Leaders must work in a more dynamic world where the vast majority of opportunities are in another metro and country — requiring that each leadership team reach beyond its comfort zone to come up with new approaches that meet the needs of new markets. Teams that have a global mindset and their eyes on diversity and gender balance WIN in today’s world. Too many times we see C-levels NOT fully supporting their team’s development, failing to expose more of the team to international issues. It’s a priority! This is an old problem, and I remember when I started 30 years ago, even multi-nationals struggled on this — isolating global knowledge to a few employees. Now, SMEs wrestle with this issue — and, honestly, not too successfully. So, at Global Chamber®, we’ve made it VERY EASY for the C-suite to share global leadership development with its team. Learn more about the Global Chamber® Enlightened Leaders initiative that offers executives events, mentorship and peerto-peer advisory. It’s for women AND men to better navigate the challenges and gain from the opportunities. NOW IS THE TIME to act — to accelerate growth and success in 2018. Be part of the solution and capture new opportunities. Contact me at doug@globalchamber.org. GlobalChamber.org

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Leroy Carson, Global Chamber Atlanta (left)

Recent Member Success Around the World by Alexandra Verhein, Marketing Intern at Global Chamber®

Global Chamber® offers weekly articles on our blog about member successes around the world. Below are some brief snippets from the past few weeks. Basically, every day something good happens somewhere in the world, as members grow within their metro and well beyond. Every time you hear a phone ring, someone in the global tribe just got her or his wings, and another deal somewhere just happened! Global Chamber has a deep reach into 525 metro areas around the world, so whether you need a client or partner in your hometown, across the country or across any border, we can help. Recently … Franchisor Growing Globally — A U.S. franchisor is looking for reliable franchisees in Africa. The team at Global Chamber made introductions – and the 2nd and possibly 3rd warm intros were “right on the mark.” We can’t share more details yet, but all is progressing well from the warm intros. Trade Mission Abidjan-to-Atlanta — Our executive director in Abidjan, Ivory Coast, connected our member to our team in Atlanta just prior to a scouting trip for a trade mission. Leroy Carson Jr., Global Advisor of Global Chamber, met them and the trade mission is planned. Watch for details!

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Global Chamber®

Grow Globally Fairs — These “Fairs” are for exporters, importers and investors to meet all the global resources in their metro, all together, one time per year. Most recently, Grow Globally Fairs have been held in Phoenix and Dallas. Grow globally! Pakistan Business Conference — Samrah Azam, executive director at Global Chamber Islamabad, held a Business Conference for regional companies to connect with the resources locally and in key countries, calling in via zoom and other technologies. Match-making across borders inspires growth! China Universities in the U.S. — A Global Chamber member intended to bring over 20 top executives from key universities in China, and she needed to be connected to the right top administrators at local colleges. The program was put together in a couple weeks, and the event was successful! Roasted Coffee to the World — Melody Lester of Noteworthy Selections in Memphis, Tennessee, USA, helps top roasters of coffee beans find retail outlets around the world. Within a week of becoming a member, Melody received more than 10 warm intros and meetings — and plenty of new opportunities!

Argentina’s Meditar Expanding — President Erwin Padinger of Meditar, a member company in Argentina and one of the most advanced healthcare companies in Latin America, visited the U.S., and he and his team were introduced to key contacts in the Washington, D.C., area and the Western U.S. Success! Mexico Collaborator Supported in NYC — A key collaborator in Mexico was looking to do a big event in New York City and asked for our help to connect with local organizations. We made two key introductions for them to help ensure that their visit — with press coverage — was successful! London Chapter “New Opportunities” — Global Chamber London Executive Director Steve Taklasingh organized a recent “New Opportunities in Europe” event that is part of an ongoing series to expose the best opportunities around the world for our members. Grow in Europe and beyond! Watch our space here in In Business Magazine and social media to see more success stories from around the world of our members having an impact, growing business and being global and UNSTOPPABLE!


Upcoming Business Growth Events by Cesar Trabanco, Vice President at Global Chamber®

Global Chamber® hosts multi-metro events monthly to help our members everywhere connect with new opportunities in their metro area and in 525 metro areas around the world (i.e., everywhere). Often, connections in other metropolitan areas can be hard to achieve, but we make it easy in many ways. Multi-metro events help companies bridge the wide gap between connections in their city and connections in cities around the world. We’ve ramped up our activities to help members grow their knowledge and connections, to grow their business. We provide warm connections AND offer events that facilitate connections across metros and borders. For the first time in our history, Global Chamber has 13 months of multi-metro webinars scheduled! Thank you, members, for your input! We’ve never had more than a few months scheduled, so this is a big deal! We’ve listened to our members — and, of course, we’ll continue to add and edit along the way. For January 2018, here is the agenda so far: • 1/16/18 Tips on Cross-Cultural Communication • 1/30/18 Tips on Setting Up Operations Overseas

And until the next section from Global Chamber in May: • February — Managing Risk in Global Business • February — Women in Global Leadership • March — NAFTA and Trade Agreement Update • March — Grow in the Middle East • April — Tips on Banking and Finance with Global Business • April — Keynote Presentation: Successful Exporter

GlobalChamber.org

3


Staying Ahead of NAFTA Trade Law Changes by Doug Bruhnke, CEO and Founder of Global Chamber®

Thank you to the team at Polsinelli for sharing a dozen top legal experts at seven locations across the U.S. to discuss NAFTA and trade. Trade deals, rules and laws are changing weekly, so we encourage our importing, exporting and investing members to stay ahead of the changes. The Polsinelli law firm provided expert knowledge for companies looking to grow under the upcoming changes, from metros Denver; Phoenix; New York City; Wilmington; Chicago; Washington, D.C.; and San Francisco. They are able to handle clients anywhere in the U.S. and the world, directly or indirectly. This conversation included the expertise and perspective of Mike Patterson, shareholder at Polsinelli, and included the other legal experts in other offices and market segments. Contact us to access to the information they shared. Hear from

4

Global Chamber®

legal experts in multiple segments about how changes in trade between countries can impact your company, and what to do about

it. NAFTA, border adjustment taxes, U.S. embargo countries — learn more by listening in or contacting us.


12 Habits for Warm Connectors by Doug Bruhnke, CEO and Founder of Global Chamber®

Every day, we guide members in their “warm connecting” with other members and people who have been identified as good connections. Warm connecting is a focused, effective way of networking. There are many ways to network but, for most of our members, warm connecting is the best because there is some thought about their business goals before we make that warm introduction — and the person who is introduced is known and will very likely be interested to meet the member. This concept has become more and more important as time has passed, especially for more experienced networkers. Being thrown into a room of others is fine, but it’s typically inefficient without some sort of technology boost to “speed connect” with the people in your specific target. Our approach is to know who you are and what you’re looking for, and then make connections that make sense for all. It doesn’t mean that every connection turns into a sale or even ends up successful, but chances are much better. So, when Vala Afshar recently posted 10 habits of good networkers, there was plenty of good info top pull from, but a few pieces missing. First, BE CLEAR ON WHO YOU’RE LOOKING FOR. Walk into any situation with your target in mind, and, in addition to finding them, spend less time with those NOT in your target. Our goal is always to ask questions to find this out for you quickly. Knowing for whom you’re looking allows you to articulate clearly to others AND helps focus your time on those who, potentially, will be more beneficial. Second, RESPOND PROMPTLY. That seems like a pretty easy idea, but too often warm introductions that we provide aren’t responded to for days and sometimes longer. That’s a sure way to fail — and it’s discouraging for the person making the introduction, too. When someone makes a warm introduction by phone or email, respond THAT DAY. Be prompt and clear in your response — don’t do a dump. What’s a dump? You start out with your history from the VERY BEGINNING and, after

Mexico President Vicente Fox speaking at a recent Global Chamber event

a long story, the listener is left to figure out or guess what you’re looking for. Cut to the chase — what are you looking for? — say it up front. Provide highlights of what you or your company brings and use history to support the case, rather than lead with the history or story. Be efficient for the other person. When we make warm intros, we make them with BOTH PARTIES in mind. That means we can expect there is a mutual benefit for the two of you to talk. You should always go into these meetings with how you can help THEM in mind in addition to how they can help you. That’s hard for many people to do, but our global tribe is actually pretty good at it; we all just need to be reminded sometimes. Below are the full 12 tips. Keep in mind to be balanced in your approach. When you’re able to think in that balanced way of helping THEM, they will more likely be open to helping YOU.

12 Habits of Good Connectors (#3-12 from Vala Afshar) 1. Be clear on who you’re looking for. 2. Respond consistently and promptly. 3. Give without expecting a get. 4. Choose kind over clever. 5. Do not connect as a hobby. 6. Connect like-minded. 7. Share accurate content. 8. Promote others’ good work. 9. Consistently contribute. 10. Do not respond to negativity. 11. Value originality. 12. Judge less. Please keep these tips in mind and contact me for more information at doug@globalchamber.org.

GlobalChamber.org

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Global Chamber®

Global Chamber Phoenix and Tucson Chairman/CEO Sponsors BMO Harris Bank Polsinelli Squire Patton Boggs Thunderbird School of Global Management President Sponsors Alliance Bank of Arizona Bank of America BBVA Compass Bank InWhatLanguage Tiffany & Bosco Wells Fargo Bank

Guillaume Kety, GM/founder of Afrika Forward (left)

Key Business Insights for Investing in Africa by Jonathan Mundell, In On Africa

Businesses should look past economic data to judge where in Africa to invest. Otherwise, they are setting themselves up for higher risk and potential failure by seeing only a small fraction of the entire picture. Global Chamber® member In On Africa recently published the 2017 Africa Country Benchmark Report (ACBR), presenting the most comprehensive view of the intermingling factors that impact the real, complex world of national growth. For instance, social factors influence business growth, while business performance affects a society’s welfare, with political implications. It’s much better to view the holistic picture as you consider where to invest in Africa or anywhere. There are five key business takeaways from the 2017 ACBR that provide important signals for understanding conditions that influence business success in Africa. ACBR does more than list data. Analysis of 34

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Global Chamber®

international indexes and 30 key indicators — nearly 20,000 data points in total — separate transitory developments from the permanent conditions that hinder or boost a country’s business climate. ACBR covers all 54 countries and gives businesses the holistic view they need. The lessons shared in this year’s ACBR are: 1. Overcoming regulations by expanding market freedoms reaps business benefits. 2. Diversifying from commodities is key to business growth. 3. Technological advancement sparks business growth. 4. Military spending is bad for business. 5. Look to democracies for better business performance. Contact me at jonathan@inonafrica.com for more information.

Special Global Advisors Charles Bruce, Johnny Rockets, The Original Hamburger Hank Marshall, UK Honorary Consul in Arizona Melissa Sanderson, Freeport McMoRan Leila Aridi Afas, Toyota Michael Patterson, Polsinelli Don Henninger, DH Advisors, Global Chamber Lee Benson, ETW Susan Shultz, The Board Institute Committees All Metros, Industries and Regions Contacts CEO/Founder: Doug Bruhnke, doug@globalchamber.org Global Marketing: Alexandra Verhein, alexandra@globalchamber.org Business Services: Cesar Trabanco, cesar@globalchamber.org Membership: Yvonne Luker yvonne@globalchamber.org


Tips for Cross-Cultural Communication by Cesar Trabanco, Vice President at Global Chamber®

Global Chamber® was pleased to recently host a worldwide discussion for exporters, importers and cross-border investors looking to be more effective in their global business by improving their crosscultural communications. This is a regional program, and the next one is January 16th with more experts. We speak with experts on globalization, localization and translation to provide communication tips for executives doing business globally, plus the resources out here for companies to be more successful. “Cross-cultural effectiveness is very dear and near to my heart in many ways. And I know how challenging it may be for many leaders too. I usually approach this topic from a couple of angles that business people (must) understand, i.e. business problems and simple words. They tend to use concepts in a wrong or misleading fashion, leading to issues and faux pas both

globally and locally. Therefore I think it is important to debunk some myths and enable leaders to set a robust stage that should be the foundation of international communication.” — Bruno Herrmann, The Nielsen Company

What can your company do differently in new markets to achieve better results? Extend the capability of your team to understand cross-cultural issues and, ultimately, be more successful.

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@inbusinessmag GlobalChamber.org

7


Trade Missions to New Markets Worldwide by Doug Bruhnke, CEO and Founder of Global Chamber®

Global Chamber® is pleased to partner with USTDA (U.S. Trade and Development Agency) on a continuous stream of “reverse trade missions” that expose U.S. exporters to new business opportunities in countries around the world. Many of the opportunities are in infrastructure, power generation and industrial development — including automotive, aerospace, healthcare and more. For example, Global Chamber San Francisco recently hosted senior delegates from Vietnam Electricity National Power Transmission (EVNNPT) to share with Global Chamber members the latest opportunities. The event was held at member Squire Patton Boggs (squirepattonboggs.com/en/locations/san-francisco) in San Francisco. Local members and Bay Area executives attended the event to learn, network and identify potential new business opportunities in support of Vietnam’s power transmission modernization plans. The event concluded with a lively and productive networking reception. It was a wonderful and insightful evening with new business relationships established. Upcoming reverse trade missions include events on power generation, heavy-duty trucks and more. Information can be found by staying in touch with Global Chamber. And, because our team is dedicated to the success of our members, we’re always looking for opportunities to connect them to new opportunities. Recently members from four industries in the Southwestern U.S. were invited to visit Global Chamber Tokyo to meet with our executive

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Global Chamber®

director there, Nobuo Yoneyama. Participants were highly varied: a Native American jewelry maker, an oil-based body care product manufacturer, a medical and athletic rehabilitation tape supplier and an engineering service company for water treatment. Support was needed by each of the companies in marketing, in identifying the best companies and opportunities to connect with, and scheduling appointments with Japanese businesses in Tokyo. Besides that, their meetings needed to be supported with interpretation between English and Japanese — along with overall logistics of making the appointments, traveling back and forth, the follow-up, etc. The four companies had been working with Global Chamber, and our U.S. team facilitated the original connection to Yoneyama in Tokyo. The companies took it from there. We’ve seen that happen many times before, and it’s a key differentiator of Global Chamber. Our members will take it from the warm connection; they just prefer that initial intro, and then they’re set. Magic often ensues! In this case, Yoneyama managed to quickly connect the four companies from the U.S. with prospective customers in Japan. Each of the companies had meetings in Tokyo, where they found potential distributors and retailers. Yoneyama knows the market there, so, while there’s no guarantee of success, the chances of are much higher because of the facilitation that we do every day in every metro. Learn more about upcoming opportunities and design a new one with our team.


WINTER 2018

UNITING, STRENGTHENING, AND ADVANCING ARIZONA’S NONPROFIT SECTOR. ARIZONANONPROFITS.ORG

We can’t go back to the future … The Alliance of Arizona Nonprofits is an action-oriented group of partners across Arizona — both nonprofits and those in the community who support them — dedicated to uniting, strengthening and advancing Arizona’s nonprofit sector. The Alliance envisions an Arizona where all nonprofits are valued, empowered and thriving.

CONTENTS

p. 2 The Nonprofit/For-Profit Connection: AWE Corporate Interiors and Cancer Support Community AZ p. 3 998, 999, 1,000! p. 4 Your Business and Arizona Gives Day p. 5 On The Board and In The Spotlight: Shaylinn Aleman

p. 6 The Board’s Role in Advocacy: An Expectation for Engaged Leadership

If you lived through the ‘80s, you will definitely remember an iconic moment from Back to the Future. It’s the moment Marty McFly, played by Michael J. Fox, realizes his future is at risk of never happening as his siblings begin to disappear from a family photo. Much like young Marty, we can’t forget what the picture of our future as a community might look like if we don’t remain vigilant about protecting the sustainability of our local nonprofits. What if no one stood up for the nonprofit sector? In 2014, the nonprofit sector contributed more than $22.4 billion to Arizona’s Gross State Product (GSP), positioning its contribution on par with the state’s entire retail trade. Arizona’s 21,137 registered nonprofits collectively generated approximately $28 billion in revenue, approximately on par with the annual revenue generated by the construction sector in the state. Also, Arizona nonprofits are responsible for 325,000 jobs and constitute the fifth-largest nongovernmental employer. Nonprofits are critical to the overall health of the Arizona economy and our communities. But what if nonprofits aren’t being compensated for the full cost of providing services? What if politics is allowed to creep in and cloud the support of charitable work, and nonprofits are no longer “safe havens” for every Arizonan? What if nonprofits and their boards don’t know they have a right to advocate on their behalf? What if …? What if …? What if …? Unfortunately, we don’t have a DeLorean to take us “back to the future” to fix things that might go wrong. We have to act now. That’s where we come in. The Alliance of Arizona Nonprofits, now 1,000 members strong, works tirelessly to ensure the voice of nonprofits is loud and clear on issues impacting their critical work on behalf of all our communities. And we make sure nonprofit professionals and their boards have access to information, resources and training to help them advocate on issues specific to their missions. The Alliance has worked tirelessly to protect and promote the nonprofit sector by rallying forces to communicate the dangers of eliminating or reducing the incentive for charitable tax deductions, educating lawmakers on why keeping Continued on Pg. 2

1


ALLIANCE OF ARIZONA NONPROFITS

The Nonprofit/For-Profit Connection: AWE Corporate Interiors and Cancer Support Community AZ As a full-service, woman-owned, office furniture dealership, AWE Corporate Interiors had an idea that would not only help the Cancer Support Community Arizona (CSACZ) — the leader in providing FREE emotional support to anyone impacted by cancer — but would also benefit its manufacturer representatives. Five years ago, Andrea Moseley, president, CEO and owner of AWE, was speaking with one of her favorite reps, Kelly Calcaterra of Contract Furnishings by Calcaterra (CFBC), and asked, “What happens to your samples at the end of each year?” Calcaterra replied they are either given to friends, donated or disposed of in the landfill. Fascinated with the response, Moseley’s idea started to take shape. She asked Calcaterra if AWE could sell the samples and give the profits to the Cancer Support Community. This would help

the reps clear out their storage units and keep product from ending up in the landfill. And that’s how GarAWEge Sale was born! This November, AWE successfully coordinated the donation throughout the year of more than 100 gently used and new sample items from more than 15 office furniture representatives, which included chairs, conference tables, desks, filing cabinets, fabric and carpet, and art pieces. “We raised nearly $3,200, with 100 percent of the proceeds benefitting CSCAZ’s 100-plus free monthly cancer support programs. We are h onored to be part of this incredible organization that provides support to anyone impacted by cancer, at no cost to the program participants,” said Moseley. She added, “The goal of the annual GarAWEge Sale is to bring awareness to the mission of an organization

that I personally support, reduce environmental waste, and raise funds to promote the services of this powerful community, so that no one faces cancer alone.” For more information about Cancer Support Community Arizona, call (602) 712-1006 or visit www.cscaz.org.

Continued from Pg. 1 politics out of nonprofit work is the right thing to do, and making sure nonprofits can continue to operate in a way that sustains the impact of their missions for future generations. Just like George McFly finally found the courage to stand up to Biff Tannen outside the school dance in Back to the Future, we can stand up for nonprofits when we join together and unify our voice. Whether you work for a nonprofit, serve

2

on a nonprofit board or donate your time or money, we all play an important role in ensuring our nonprofits are poised to continue to serve and support Arizona. Kristen Merrifield, CAE, CNAP Chief Executive Officer Alliance of Arizona Nonprofits


WWW.ARIZONANONPROFITS.ORG

998, 999, 1,000! The Alliance was excited to reach a huge milestone in 2017 — reaching 1,000 members! We have experienced tremendous growth, going from 750 members in 2015 to 1,000 in 2017. To celebrate, we gave away $1,000 to three lucky nonprofits at our Annual Conference in September.

Matthew’s Crossing Food Bank provides a number of programs to help our neighbors in need with hunger relief. Meals to Grow is our food bank’s outreach to combat childhood hunger. The $1,000 we received from the Alliance is being used to help us underwrite the cost of food that we put in backpacks and on-school-campus food closets. Currently,

We were so excited to win the $1,000 prize at the Arizona Alliance of Nonprofits Annual Conference for the Mesa Arts Center Foundation this year! Due to a generous Matching

The $1,000 was an unexpected and welcome surprise! The award helps TCAA to further its mission to foster dignity and self-reliance for the economically vulnerable in the

Matthew’s Crossing is distributing about 300 backpacks each week to East Valley schools (increasing to more than 500 in the spring). The backpacks are a key component of weekend hunger relief. The funds will also support our food closets — an alternative to helping with weekday hunger relief. We are currently stocking two high school food closets and two community college food closets (increasing to 10 in the spring). Teachers are reporting that attendance has improved on Fridays because students are eager to get their backpacks. Attendance is also on the rise on Monday and students show up more energetic and eager to learn — all indicators of better performance in school. The better a child preforms in school, the more likely they are to do better in life. Jan Terhune, Executive Director, Matthew’s Crossing Food Bank

Grant from Bill Passey and Maria Silva to the Mesa Arts Center Foundation, I was able to double our money. The $1,000 prize became a $2,000 gift for our outstanding engagement program, Project Lit. Project Lit engages students through Hip Hop, Drama, Improv and Spoken Word, which provides tools to enhance K-12 critical literacies. Beginning by building safety in a student-centered environment, Project Lit then builds traditional literacy, 21st century job skills and resiliency. I want to thank the Arizona Alliance of Nonprofits for this generous prize and wonderful opportunity for our organization. Renee Lopata, Development Director, Mesa Arts Center

communities we serve. We do this through programs that provide relief from hunger, shelter and permanent housing for men and women experiencing homelessness, services that support seniors’ ability to live independently and age in place, and support for families as they strive to raise healthy families and improve their level of economic independence. The agency serves more than 19,000 seniors, adults and children through these programs each year. Deborah Arteaga, Executive Director, Tempe Community Action Agency

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ALLIANCE OF ARIZONA NONPROFITS

Your Business and Arizona Gives Day Arizona is home to more than 20,000 nonprofits that provide services we rely on every day. Our nonprofits create safe places to learn, live, and fulfill dreams. They enrich our lives through art and culture, and protect our natural wonders, cultural heritage and human dignity. In order to strengthen Arizona’s nonprofit community, Arizona Gives Day was created as a way to create awareness, connect the public and businesses, and increase financial support for these important, and often critical, organizations. More than 72 percent of Arizona’s nonprofit revenue is generated from earned revenue, fees for services and government contracts — NOT from philanthropic contributions. This is why your involvement is so important in making the nonprofit sector stronger! It’s also important to remember nonprofits are more than “charity.” Collectively, Arizona’s nonprofits are a powerful economic engine employing more than 150,000 workers and generating more than $27 billion in revenues annually, which is on par with the annual revenue generated by the construction industry. How can your business ensure a successful Arizona Gives Day 2018 for the more than 1,000 participating nonprofits? Pick one or as many of the following options that make sense for your business. Social Media Like or follow us on Facebook (Arizona Gives Day) (facebook. com/ArizonaGivesDay) and Twitter (@azgives) (twitter.com/ azgives) and share our posts and tweet about Arizona Gives Day 2018 before and on April 3. Communication Encourage your employees and customers to participate, through your e-newsletter, website, social media, and email marketing. Donors can schedule their donations in advance, too.

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Fundraising Page Adopt a participating nonprofit for your organization to give to and create a group fundraising page on AZGives.org. Matching Gifts Provide a “matching” campaign gift for a participating nonprofit. The full list can be found at AZGives.org. Discounts & Donations Offer a discount on your products or services to customers who show a receipt confirming they gave to Arizona Gives Day. Host a party or event and encourage your attendees to give. Donors can schedule their donations in advance, too. In-Kind Advertising Donate your advertising (digital, print, radio, tv, outdoor) or specify an ad for Arizona Gives Day. Prominently display Arizona Gives Day on your outdoor reader or public space up to two weeks prior to April 3. Download a logo from AZGives.org under For Businesses. Sponsorship Partner with Arizona Gives Day to assist with critical operating and administrative costs. Go to AZGives.org/Sponsors for a list of opportunities starting at $1,000. Join the Alliance of Arizona Nonprofits and Arizona Grantmakers Forum for Arizona Gives Day 2018 to strengthen the Arizona nonprofit community. It’s easy and fun! Questions? Email us at AZGives@arizonanonprofits.org.


WWW.ARIZONANONPROFITS.ORG

On The Board and In The Spotlight

Shaylinn Aleman

Membership Manager, Arizona College Access Network How long have you served on this board? I am in my second year.

Name: Shaylinn Aleman Company: Arizona College Access Network Job Title: Membership Manager Board: Alliance of Arizona Nonprofits Board Title: Apprentice Board Member

What drew you to this organization? In 2016, I joined a program called the Manifesto Project, which, essentially, pairs a young professional with a nonprofit board as an apprentice for a year. In my current role, I work for a membership organization, which is what the Alliance is, so I felt there was enough in common — which sparked my interest. I wanted to know more about how other membership organizations function. What would you say is one of the biggest challenges for a young professional serving on a nonprofit board? For me, my biggest challenge was my time management. I wanted to be a part of every board and board committee meeting, which was not easy to do while maintaining work at my job. How did you overcome that challenge? After trying out every committee a couple of times, I narrowed it down to the one I really wanted to be a part of and have stuck with that. What has been the biggest opportunity from this experience? One of the biggest opportunities for me has been the ability to develop skills and have experiences that I would not otherwise have had at my job. I have been able to join committees and participate in things that have been incredible. I also have been able to meet some fantastic people and grow my professional network, which is always exciting for someone just starting out in their career.

What do you wish you had known before joining the board? There is not one thing I wish I had known. The entire experience has been new for me as I have never done anything like this before, so I knew nothing going into this and have learned so much. What do you feel your greatest accomplishment has been during your time on the board? My biggest accomplishment is finally having the ability to contribute. When I first started my apprenticeship, I did a lot of soaking up the information, and that was my focus. Now that it has been over a year, I am able to understand everything and have input. I also have joined a board committee, which is also an accomplishment for me. What would you say to another young professional considering joining a nonprofit board? It seems to me that there are a lot of young professionals who do not think they are qualified for a board, but that simply is not true. I believe all boards need diversity and different perspectives. I would tell any young professional to find an organization they feel passionate about and do not be afraid of joining their board. I would also tell them do not be afraid of asking questions and voicing thoughts while in meetings. That’s how we learn.

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ALLIANCE OF ARIZONA NONPROFITS

The Board’s Role in Advocacy: An Expectation for Engaged Leadership Advocacy is a powerful way to leverage the important mission work that your organization does in your community. Board members — as influential community leaders — can help increase the likelihood of your nonprofit’s success by engaging in advocacy. Fundamentally, board members are champions for their missions and have an opportunity to connect their passion for their organization’s work with their influence within the community. But what does it really mean to be an ambassador who advocates for your mission? And what — specifically — can board members do?

Many organizations avoid advocacy out of misplaced myths that it is somehow wrong, which limits the impact and effectiveness of the nonprofit sector. The truth is, as a nonprofit organization, you have quite a bit of flexibility to advocate for (or against) decisions by others that could advance (or hurt) your organization’s mission. For more on the legal ability of nonprofits to engage in fun and rewarding advocacy-related activities, download “Being a Player: A Guide to the IRS Lobbying Regulation for Advocacy Charities” from the Alliance for Justice or consult an attorney who is well-versed in the many legal ways nonprofits may engage in advocacy.

What Is Advocacy? Advocacy is a broad term that covers a wide range of legal and proper activities for nonprofit organizations and includes much more than just legislative lobbying. According to the Alliance for Justice:

An Opportunity. An Expectation. A Responsibility.

While all lobbying is advocacy, not all advocacy is lobbying. Advocacy is any action that speaks in favor of, recommends, argues for a cause, supports or defends, or pleads on behalf of others. It includes public education, regulatory work, litigation, and work before administrative bodies, lobbying, nonpartisan voter registration, nonpartisan voter education, and more.

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“Board members serve as a link between the organization and its members, stakeholders, constituents, or clients. They should think of themselves as the organization’s ambassadors and advocates.” —Ten Basic Responsibilities of Nonprofit Board Members, BoardSource By joining a board, an individual is making a public commitment to support and strengthen that organization by providing her or his leadership, expertise, and influence — including external relationships — that will enable the organization’s mission to flourish.


WWW.ARIZONANONPROFITS.ORG Board members of charitable organizations spend a lot of time “going inside,” focusing on internal items, such as accountability, finances and programs. Those topics are certainly important, but board members also must accept the expectation that they will spend time advancing the nonprofit’s mission by “going outside” the organization, serving as connectors, ambassadors and advocates: “Members of exceptional boards extend the reach of the organization by actively using their own reputations and networks to secure funds, expertise, and access. They bring social and political capital to the organization, thereby enhancing its reputation and capacity. They use their personal and business relationships to expand awareness of the organization and actively participate in cultivating partnerships and collaborations. Serving as the community face of the organization, they advocate on behalf of the organization in appropriate public contexts.” —The Source: Twelve Principles of Governance that Power Exceptional Boards, BoardSource How Can Board Members Help? Being an ambassador by advocating for your mission can take many different forms. It can be as simple as talking with a friend about why you care deeply about your organization’s

mission, attending events or meetings where your organization needs to be visible, or making connections with influential leaders within your network. Simply put, you’re an ambassador when you engage people to support your nonprofit’s mission. Those people could be anyone in your community — government officials, business leaders, the news media, and others in the charitable sector — who is in a position to influence public opinion or decision making that will enable your organization to do its work better. Being an effective ambassador and advocate for your mission starts by asking yourself the question: Who can I talk to today to advance our mission? If you have a passion and a voice, you have what it takes to be an advocate. Start a conversation in your boardroom about the potential for advancing your organization’s mission through board advocacy. Download a free discussion guide at standforyourmission.org. Stand For Your Mission is a campaign for board advocacy initiated by: Bolder Advocacy, BoardSource, Campion Foundation, Forum of Regional Associations of Grantmakers, Knight Foundation and National Council of Nonprofits.

connecting

REAL people with

REAL

careers

via

HIRING companies

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resources CareerConnectors.org 480.442.5806

CareerConnectors is a 501 (c)(3) non-profit organization

For more information about the program, or to find out how you can help, please contact Sophie Etchart, Founder & CEO of Read Better Be Better at sophiee@readbetterbebetter.org or (623) 229-7880.

7


ALLIANCE OF ARIZONA NONPROFITS

ALLIANCE OF ARIZONA NONPROFITS BOARD OF TRUSTEES

Shaylinn Aleman Arizona College Access Network (AzCAN) BOARD CHAIR: Kelly McCullough R Kids/R Entertainment SECRETARY: Ellis Carter Caritas Law Group, P.C. VICE CHAIR: Sonia Perillo Audubon Arizona with the National Audubon Society TREASURER: Ron Stearns CliftonLarsonAllen

Pam Gaber Gabriel’s Angels Karl Gentles Back to School Clothing Drive Len Gutman American Heart Association/ American Stroke Association Donnette Hermes

ALLIANCE OF ARIZONA NONPROFITS STAFF Kristen Merrifield, CAE, CNAP Chief Executive Officer KristenM@arizonanonprofits.org (602) 279-2966 x14 Jennifer Blair Director of Membership JenniferB@arizonanonprofits.org (602) 279-2966 x20 Robin Hanson Program Manager – AmeriCorps*VISTA RobinH@arizonanonprofits.org (602) 279-2966 x19

Kristen Merrifield, CAE Alliance of Arizona Nonprofits

Jennifer Purcell Director of Community Engagement JenniferP@arizonanonprofits.org (602) 279-2966 x17 Kathleen Thomas Program Coordinator KathleenT@arizonanonprofits.org (602) 279-2966 x22 Molly Wagge AmeriCorps VISTA Leader MollyW@arizonanonprofits.org (602) 279-2966 x18

Amy Schwabenlender Valley of the Sun United Way Glenn Wike Arizona Community Foundation

Jacki Presnal Office Manager & Executive Coordinator JackiP@arizonanonprofits.org (602) 279-2966 x10

Alliance of Arizona Nonprofits 360 E. Coronado Road, Suite 120 • Phoenix, AZ 85004 Phone: (602) 279-2966 • www.ArizonaNonprofits.org

R

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Achor, Shawn, 31

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Baker, Shaun, 11

Giuliano, Neil, 10

Lopata, Renee, 51

Teetsel, Jeff, 16

Blecharczyk, Nate, 15

Grombacher, George, 36

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Terhune, Jan, 51

Branstad, Terry, Ambassador, 15

Hahn, Bill, 16

McCartney, Rick, 9

Vaynerchuk, Gary, 31

Brotherson, Chris, 30

Hamer, Glenn, 26

McLeod, Tammy, 10

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Merrifield, Kristen, 49

Watson, Sandra, 29

Brown, David R., 10

Hoffman, Sintra, 28

Mundell, Jonathan, 46

Bruhnke, Doug, 41

Jacobson, Karen, Dr., 33

Nishant, Nishant, 20

1100 KFNX, 21

Day-Timer, 38

Affinity Technology, 40

Delta Dental, 7

North Phoenix Chamber of Commerce, 35

Allante Properties, LLC, 16

Different Pointe of View, 39

Alliance Bank of Arizona, 3

ESI Ventures, 11

Alliance of Arizona Nonprofits, 49

eTrack Tech, 15

American Express, 35

eWomenNetwork Phoenix/Scottsdale, 35

OpenWorks, 18 Orange Sky, 39

SUBWAY Restaurants of Arizona, 12 Support My Club, 56 Talking Stick Casino, 39

Original Chop Shop, The, 39

Tempe Chamber of Commerce, 33, 34, 35

Outcome Engenuity, 11

Tempe Community Action Agency, 51

Pima Center, 16

The Compass Arizona Grill, 39

Flinn Foundation, 10

Pointe Hilton Tapatio Cliffs Resort, 39

Tiffany, 38

Forbes Insights, 30

Polsinelli, 43

Valley Leadership, 10

FSW Funding, 40

Quintero Golf Club, 20

Volvo, 38

Gilbert Chamber of Commerce, 34

Radix Law, 17

W. P. Carey School of Business, 58

Glendale Chamber of Commerce, 34

Read Better Be Better, 55

Wallbeds ‘n’ More, 37

Global Chamber, 41

Rosetta Stone, 11, 30 Rounds Consulting Group, 33

Waste Management Phoenix Open, 2

Arizona State University, 58

Greater Phoenix Chamber of Commerce, 33

Arizona Technology Council, 35

Greater Phoenix Economic Council, 27

Scottsdale Area Chamber of Commerce, 35

AT&T, 11

Greater Phoenix Leadership, 10

Shea Homes, 12

WESTMARC, 28

Avnet, 20

Hotel Adeline, 11

Snell & Wilmer, 23

Xtension Envy, 12

AWE Corporate Interiors, 50

Hyatt Regency Phoenix, 39

Stearns Bank, 6

Yardi Systems, 14

Bank of the West, 8

In On Africa, 46

Big Brothers Big Sisters of Central Arizona, 21

Jennings, Strouss & Salmon, 22

Apex off 7th Street, 16 Arizona Association for Economic Development, 34 Arizona Chamber of Commerce and Industry, 26 Arizona College Access Network, 53 Arizona Commerce Authority, 29 Arizona Diamondbacks, 59

Blue Cross Blue Shield of Arizona, 60 BMO Harris, 13 Bob and Renee Parsons Foundation, The, 12

Lofts at Westgate, The, 16 MainSpring Capital Group, 16 Maricopa Community Colleges, 44 Matthew’s Crossing Food Bank, 51 Mayo Clinic, 19

Cambridge Benefit Solutions, 32

Mental Health of America of Arizona, 18

CBRE, 16 Chandler Chamber of Commerce, 27, 38 COMMERCIALCafé, 14 Compass Career & Business Solutions, 11

Westgate Entertainment District, 16

CHECK US OUT

Jive Communications, 6

Bowlero, 12 Career Connectors, 55

WebPT, 12

Mesa Arts Center, 51 Mesa Chamber of Commerce, 34 National Bank of Arizona, 5 Neiman Marcus, 38 New Pathways for Youth, 17

In each issue of In Business Magazine, we list both companies and indivuduals for quick reference. See the stories for links to more.

/inbusinessphx

Bold listings are advertisers supporting this issue of In Business Magazine.

@inbusinessphx

57 20JAN.1 8 INBUSINESSPHX.COM


A CANDID FORUM

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In Perspective: The U.S.-Mexico Border Subtleties, complexities and synergies by Dr. Arnold Maltz

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Arnold Maltz, Ph.D., is an associate professor in the Department of Supply Chain Management at Arizona State University’s W. P. Carey School of Business. He has been with ASU since 1997. Projects on which he has consulted include Course Development, Accenture, in 2009; Advisory Services, Unified Grocers, in 2007; The Southwest Gateway: Logistics on the Arizona/Mexico Border, Yuma Port Authority, in 2007; and Advisory Services, Innovative Brands, in 2007.

JAN. 20 1 8

58

INBUSINESSPHX.COM

My first academic position was at New Mexico State University in 1991. On my first day there, I was shown a plan to improve border crossing operations from Mexico to the United States. I’ve been involved in Mexico-U.S. issues ever since. Since I study transportation and logistics issues, I initially spent considerable time understanding, explaining and evaluating the relevant parts of the North American Free Trade Agreement. Businesses needed to know about the border crossing process, which prescribes where each country’s drivers can operate, what the equipment limitations are and what information has to be exchanged. For example, NAFTA included a controversial provision (twice suspended) allowing Mexican drivers to deliver Mexican freight to U.S. companies. I headed a research team at Arizona State University that designed a way to test these drivers for English proficiency. Although access for Mexican drivers remains stalled for political reasons, learning about the interaction between state safety responsibilities and federal customs inspection procedures has been invaluable for informing my classes on trade. Joint efforts with Industrial Engineering resulted in a simulation model of the Mariposa Port of Nogales, as we tried to understand capacity issues in the Guaymas Port-NogalesTucson corridor. Much of the fresh produce consumed during the winter in the U.S. comes through Nogales, so this is by far Arizona’s busiest crossing and its efficiency is vitally important. Further studies led the General Services Administration to implement a $160-million upgrade to the port, and today the Arizona Department of Transportation is improving connections between the port and the nearest interstate. A second project with Industrial Engineering produced a sophisticated forecasting system for the Douglas-Agua Prieta crossing in Southeast Arizona. Both Douglas and Yuma believe Mexico is an important driver of economic development for their respective areas, and I have participated in studies to quantify those possibilities as much as possible. On a more “macro” level, I helped facilitate discussions of Arizona’s efforts to work with Mexico to build a new seaport, Punta Colonet, south of Ensenada, to relieve congestion at the ports of Los Angeles and Long Beach. Working with various state and federal agencies, we found that one major sticking point was, Asian traffic for the U.S. would have to clear Mexican Customs and then, later, U.S. Customs, increasing the risk of delays. And then there was the matter of a $5-billion rail connection that would have to be built from the new port to the U.S. border and operated by a Mexican railroad partially owned by the Union Pacific. Most recently, I have been involved in two initiatives relative to Mexico and NAFTA, which is being revisited under the current administration. I helped a Mexican consulting company evaluate the ability of Mexico’s logistics infrastructure to handle established and new automotive assembly operations throughout the country. We learned that various Mexican

seaports probably had adequate capacity, at least in the near term, but that there were opportunities both for third party logistics companies and especially for rail operators if they could improve their capabilities. The huge investments in Mexico by multiple car manufacturers from Europe, Asia and the U.S. suggest that the auto industry is really North American in scope and that Mexico’s less expensive labor force is critical to its ongoing success. As an aside, a number of these plants export to many non-NAFTA countries, and Mexico is looking to increase those exports wherever possible. The second initiative was through the George W. Bush Presidential Center, where I contributed to the North American Competitiveness policy paper the center produced, which indicated that the movement of people and information is just as critical as goods movement to the efficient workings of the North American economies. So, it’s been a fascinating 25-year ride thinking about Mexico-U.S. connections, both at the detailed operational level and the larger policy/economic development questions. Thanks to my experiences, I hope I’ve been able to communicate the subtleties and complexities of two different cultures and economies trying to make the most of the synergies between them. And that plan I saw my first day at New Mexico State? It is now the Santa Teresa border complex, complete with a $400-million investment from Union Pacific, as well as a Foxconn plant that is reputed to be the largest supplier of build-to-request computers for Dell North America. So, I continue to believe in the border as an opportunity for all of us to prosper. W. P. Carey School of Business wpcarey.asu.edu

Then-Mexican President Carlos Salinas de Gortari saw NAFTA — which took effect in 1994 following three years of bilateral talks between the U.S., Canada and Mexico — as an opportunity to modernize the Mexican economy so that it would “export goods, not people.”


January 2018 issue of In Business Magazine  
January 2018 issue of In Business Magazine